The Indian government has achieved a massive milestone in direct tax collection for the current financial year with the numbers crossing Rs. 18 lakh crore. According to the latest figures released by the Income Tax Department, the net direct tax collections grew by almost 20% till mid-March 2023 compared to the same period last year.
With over Rs. 18.90 lakh crore collected so far, the government has exceeded 97% of its revised direct tax target for 2023-24. The revised estimates had pegged collections at Rs. 19.45 lakh crore. Sharp increases in advance tax payments boosted revenues, with the advance tax figure rising more than 22% year-on-year.
While corporation tax made up nearly 50% of collections at Rs. 9.14 lakh crore, personal income tax including securities transaction tax accounted for the remaining Rs. 9.72 lakh crore. Refunds worth Rs. 3.37 lakh crore have also been issued so far. On a gross basis, before adjusting refunds, direct tax revenue grew by close to 19% to exceed Rs. 22 lakh crore.
This huge growth of nearly 20% displays India's strong economic recovery post-Covid and improving taxpayer compliance. With just over a month left, the tax department is confident of crossing the Rs. 19 lakh crore target if the positive momentum continues. Achieving century-figure direct tax collections reflects well on India's fiscal strength and augurs well for the coming financial year.
