Income Tax News: India’s government has much to celebrate when it comes to direct tax collection for the financial year 2023-24. Not only did collections surpass expectations, but they also grew significantly compared to the previous year. Let’s delve deeper into the details.
Net Collections Outperform Estimates
Net direct tax collections for FY 2023-24 reached a healthy Rs. 19.58 lakh crore, exceeding the initial budget estimate of Rs. 18.23 lakh crore by a notable 7.40%. Even the revised estimate of Rs. 19.45 lakh crore was surpassed by a margin of 0.67%. This robust performance indicates a positive economic climate and improved tax compliance.
Direct Tax Collections See Significant Rise
Overall, direct tax collections (including refunds) witnessed a growth of 17.70% compared to FY 2022-23. This growth reflects a well-functioning tax system and potentially increased income levels across individuals and corporations.
Corporate and Personal Income Tax Performance
- Corporate Tax Collection: Gross corporate tax collection climbed to Rs. 11.32 lakh crore in FY 2023-24, representing a growth of 13.06% over the previous year. Net collections also saw a rise of 10.26%, reaching Rs. 9.11 lakh crore.
- Personal Income Tax Collection: Gross personal income tax collection (including Securities Transaction Tax or STT) witnessed a significant surge of 24.26%, reaching Rs. 12.01 lakh crore in FY 2023-24. Net collections mirrored this growth, climbing 25.23% to Rs. 10.44 lakh crore.
Refunds on the Rise
The Indian government issued Rs. 3.79 lakh crore in tax refunds during FY 2023-24, reflecting a 22.74% increase compared to the previous year. This indicates continued efforts to streamline the tax system and facilitate faster processing of refunds.
