The income tax (I-T) department on Thursday said that the net direct tax collection so far this fiscal jumped 19.41 per cent to Rs 14.70 lakh crore, reaching about 81 per cent of the full-year target. The Centre has budgeted to collect Rs 18.23 lakh crore from direct taxes (personal income tax and corporate tax), 9.75 per cent higher than Rs 16.61 lakh crore mopped up last fiscal.
In a statement, the Central Board of Direct Taxes (CBDT) said, “Direct Tax collection, net of refunds, stands at Rs 14.70 lakh crore which is 19.41 per cent higher than the net collection for the corresponding period of last year. This collection is 80.61 per cent of the total Budget Estimates of Direct Taxes for FY23-24.”
Refunds amounting to Rs 2.48 lakh crore have been issued during April 1, 2023 to January 10, 2024. On a gross basis, direct tax collection up to January 10, 2024 registered steady growth.
The gross collections are at Rs 17.18 lakh crore, 16.77 per cent higher than the gross collection for the corresponding period of last year. The growth rate in gross Corporate Income Tax (CIT) and Personal Income Tax (PIT) is 8.32 per cent and 26.11 per cent respectively. After adjustment of refunds, the net growth in CIT collections is 12.37 per cent and that in PIT collections is 27.26 per cent.
Personal income and corporate tax collections are likely to rise to more than Rs 19 lakh crore in 10 years of Prime Minister Narendra Modi-led government, providing more leeway to come out with people-friendly tax measures. Driven by the increasing income of individuals, net direct tax collections after adjusting for refunds increased from Rs 6.38 lakh crore in FY13-14 to Rs 16.61 lakh crore in FY22-23.
In the current financial year, the collections from net direct taxes, personal income tax and corporate tax, have so far grown by 20 per cent and at this pace, the mop-up is likely to be around Rs 19 lakh crore in the fiscal ending on March 31, 2024.