Direct tax collections in India surge 21.8% in FY24
What's the story
India's direct tax collections have soared by 21.82% year-on-year, hitting Rs. 9.57 lakh crore in the current fiscal year (2023-24) up to October 9. As per the Central Board of Direct Taxes (CBDT), this amount, net of refunds, represents 52.50% of the total budget estimates for direct taxes in FY24. The provisional data shows that gross collections reached Rs. 11.07 lakh crore, a 17.95% increase compared to the same period last year.
Details
Growth rates for corporate and personal income taxes
The finance ministry's Revenue Department revealed growth rates of 7.30% for corporate income tax (CIT) and 29.53% for personal income tax (PIT) in terms of gross revenue collections. After accounting for refunds, net growth in CIT collections stands at 12.39%, while PIT collections have surged by 32.51% (PIT only) or 31.85% (PIT including securities transaction tax). These figures were released in a statement today (October 10).
What Next?
Refunds and government efforts
Between April 1, 2023, and October 9, 2023, refunds totaling Rs. 1.50 lakh crore have been issued. The remarkable growth in direct tax collection underscores the government's successful efforts in enforcement and the use of technology in the tax collection process. This accomplishment is expected to boost India's fiscal health positively.