Gross direct tax collections up by 19% in 2023-24
Finance ministry reports 19% increase in gross direct tax collections to ₹22.27 lakh crore in 2023-24, with net revenue at ₹18.90 lakh crore.
New Delhi: The finance ministry on Tuesday reported 19% annualised increase in gross direct tax collections to ₹22.27 lakh crore in 2023-24 (up to March 17) with an almost 20% jump in net revenue to ₹18.90 lakh crore after paying ₹3.37 lakh crore refunds, signifying robustness of the economy and enhanced compliance.
This collection is 97.17% of the total revised estimates (RE) of direct taxes for FY 2023-24. Robust tax collections prompted finance minister Nirmala Sitharaman to raise the net direct tax target to ₹19.45 lakh crore in RE of FY24 from little over ₹18.23 lakh crore in the initial budget estimates (BE for FY24).
“These are provisional numbers. The net collections may even exceed the RE target of FY24 as figures for two more weeks are yet to come before the fiscal year ends,” one independent expert said requesting anonymity.
The net direct tax collection in FY24 (as on March 17) was ₹18,90,259 crore, which included corporate income-tax (CIT) of ₹9,14,469 crore and personal income-tax (PIT) including securities transaction tax (STT) of ₹9,72,224 crore, the Union finance ministry said in a statement.
Refunds amounting to ₹3,36,808 crore have been issued in the current financial year (2023-24, up to March 17), as compared to refunds of ₹2,98,758 crore issued in 2022-23, marking an increase of 12.74% over the refunds issued during the same period in the preceding year, it said.
In a post-budget interview with HT, Central Board of Direct Taxes (CBDT) chairman Nitin Gupta said that the income-tax department would will try to achieve the RE target in remaining two months of 2023-24. “We don’t know what will be the inflow of advance tax or TDS [tax deducted at source], but we will make an endeavour to achieve this it is achievable,” he said in the interview published on February 6.
The refunds have also shown significant growth due to efficient faceless online tax administration. “The provisional figures of direct tax collections for the financial year 2023-24 (as on 17.03.2024) show that net collections are at Rs. 18,90,259 crore, compared to Rs. 15,76,776 crore in the corresponding period of the preceding financial year (i.e. FY 2022-23), representing an increase of 19.88%,” the ministry said in the statement.
The provisional figures of gross collection of direct taxes before adjusting for refunds for FY24 stood at ₹22,27,067 crore compared to ₹18,75,535 crore in the corresponding period of the preceding financial year, showing a growth of 18.74% over the collections of FY23, it added.
The gross collection included CIT at ₹10,98,183 crore and PIT, including STT at ₹11,25,228 crore. “Minor head wise collection comprises Advance Tax of Rs. 9,11,534 crore; Tax Deducted at Source of Rs. 10,44,511 crore; Self-Assessment Tax of Rs. 1,73,296 crore; Regular Assessment Tax of Rs. 73,548 crore; and Tax under other minor heads of Rs. 24,177 crore,” the ministry said in the statement.
Provisional figures of total advance tax collections for 2023-24 (as on March 17) were ₹9,11,534 crore, against ₹7,45,246 crore for the corresponding period of FY23, showing a growth of 22.31%. The advance tax collection of ₹9,11,534 crore comprises CIT at Rs. 6,72,899 crore and PIT at ₹2,38,628 crore, the ministry added.
Sumit Singhania, Partner, Deloitte India said: “A nearly 20 percent year on year growth in Tax revenues underlines continued momentum of tax policy reforms carried out round the year and not necessarily as a part of annual budgetary exercise. What also stands out is the significant growth is advance tax collections that arguably can account for growing voluntary compliances across taxpayers categories.”
