The Business Bytes
NEW DELHI, APRIL 21, 2024 (TBB BUREAU): India’s net direct tax collections for the fiscal year ended March 31, 2024 witnessed a substantial surge, recording a remarkable 17.7 per cent increase to reach Rs 19.58 lakh crore, announced the tax department on Sunday.
The net collections of income and corporate taxes, which constitute the majority of direct taxes, surpassed both the Budget estimates and revised estimates by significant margins. In the 2023-24 financial year, they exceeded the Budget estimates by Rs 1.35 lakh crore (7.40 per cent) and the revised estimates by Rs 13,000 crore.
Initially, the government had set a target for direct tax collection in FY24 at Rs 19.45 lakh crore in the interim Budget presented on February 1. Subsequently, the gross tax collection target as per the revised estimate stood at Rs 34.37 lakh crore for FY24.
The provisional figures for FY 2023-24 reveal that while gross direct tax collections surged by 18.48 per cent to Rs 23.37 lakh crore, net proceeds (after refunds) saw a substantial increase of 17.7% to Rs 19.58 lakh crore. This surge reflects buoyancy in the economy and a rise in income levels of both individuals and corporates.
Refunds amounting to Rs 3.79 lakh crore were issued during FY 2023-24, according to a statement by the Central Board of Direct Taxes (CBDT).
The CBDT highlighted, “The provisional Direct Tax collections for FY 2023-24 stand at Rs 19.58 lakh crore, compared to Rs 16.64 lakh crore in the preceding FY 2022-23.” It further noted that the provisional direct tax collections exceeded the Budget Estimate by 7.40 per cent and Revised Estimates by 0.67 per cent.
The gross collection of Direct Taxes (before refunds) for FY 2023-24 stood at Rs 23.37 lakh crore, indicating a growth of 18.48 per cent over the previous fiscal year’s gross collection of Rs 19.72 lakh crore.
Moreover, the gross corporate tax collection (provisional) in FY 2023-24 witnessed a growth of 13.06 per cent to Rs 11.32 lakh crore compared to the previous fiscal year. Similarly, the net corporate tax collection (provisional) showed a growth of 10.26 per cent over the preceding year, reaching Rs 9.11 lakh crore.
On the other hand, the gross personal income tax collection, including Securities Transaction Tax (STT), for FY 2023-24 surged by 24.26 per cent to Rs 12.01 lakh crore, while the net personal income tax collection including STT increased by 25.23 per cent to Rs 10.44 lakh crore.
Furthermore, the indirect tax collection for FY24 exceeded the revised estimates (RE) of Rs 14.84 lakh crore by a significant margin, aided by a record Goods and Services Tax (GST) collection, as stated by a senior government official.
