Direct tax mop-up rises 30% till Sept 8

The Centre’s direct tax collections (post-refunds) grew by a robust 30 per cent on-year till September 8 of the ongoing financial year, even as refunds increased sharply by 65 per cent during the period.

Both personal income tax (PIT) and corporate income tax (CIT) performed much better than anticipated, thanks to higher compliance and a favourable base effect.

“Direct Tax collection, net of refunds, stands at Rs 5.29 trillion which is 30.17 per cent higher than the net collections for the corresponding period of last year. This collection is 37.24 per cent of the total Budget Estimates of direct taxes for FY23,” according to a statement by the  Central Board of Direct Taxes (CBDT).

The Centre’s direct tax collections are expected to exceed the FY23 Budget target of Rs 14.2 trillion by a substantial amount, as the target for the year is at par with actual receipts of last fiscal.

After adjustment of refunds, the growth in CIT collections was 32.73 per cent and that in PIT collections (including STT) is 28.32 per cent till September 8 of FY23. Refunds amounting to Rs 1.19 trillion have been issued from April 1, 2022, to September 8, 2022, which are 65.29 per cent higher than refunds issued during the same period in the preceding year.

Gross direct tax collections (before refunds) grew by 35.5 per cent on year to Rs 6.48 trillion up to September 8 of the current financial year.

Newsletter | Click to get the day’s best explainers in your inbox

CBDT Chairman Nitin Gupta had said recently, “The growth is on account of higher compliance, thanks to the use of technology and data mining (which is used to show taxpayers their tax liability), as well as base effect, as Covid had resurfaced in the June quarter of last fiscal.”

Amit Singhania, partner, Shardul Amarchand Mangaldas & Co, said, “The increase in direct taxes collections is encouraging and is indicative of the fact of robust economic growth. The growth rate of Corporate Income Tax indicates buoyancy in the profitability of India Inc.”  FE

Source link

The Press Walla

The Press Walla is the India's fastest growing youth online magazine which covers all latest trending stories from entrepreneurship, business, entertainment etc

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button