India's direct tax collections surged by 17.7% in FY2024
India's fiscal year ending in March 2024, witnessed a significant increase of 17.7% in net direct tax collections, reaching ₹19.58 crore, according to the tax department. This growth surpassed even the most optimistic revised estimates. The majority of these taxes, which include income and corporate taxes, exceeded the budget estimates for the financial year by ₹1.35 trillion (7.40%) and outperformed revised estimates by ₹13,000 crore.
Gross direct tax collections show robust growth
The provisional gross direct tax collections for the fiscal year 2023-24 rose by a robust 18.48% to ₹23.37 trillion. After accounting for refunds, net proceeds surged by 17.7% to ₹19.58 trillion, indicating a thriving economy and rising income levels among individuals and corporations. The Central Board of Direct Taxes (CBDT) issued refunds amounting to ₹3.79 trillion during this period.
CBDT reports exceeding budget and revised estimates
According to the CBDT, "The provisional figures of Direct Tax collections for the financial year (FY) 2023-24 show that net collections are at ₹19.58 trillion, compared to ₹16.64 trillion in the preceding financial year i.e., FY 2022-23." The initial budget for fiscal year 2023-24 had estimated collections at ₹18.23 trillion, which were later revised upwards to ₹19.45 trillion. The CBDT further noted that "the provisional Direct Tax collections have exceeded the Budget Estimate by 7.40% and Revised Estimates by 0.67%."
