Net Direct Tax Collection Sees Robust 16.45% Growth to Rs 15.82 Lakh Crore

The net direct tax collections for the fiscal year 2023-24 have surged by 16.45% to Rs 15.82 lakh crore by December 17, driven primarily by a strong 21% rise in advance tax payments. This growth reflects the government’s improved tax collection mechanism and efforts to bridge the fiscal deficit gap. The increase includes various taxes such as corporate tax, personal income tax, and securities transaction tax (STT), along with other levies.

Key Highlights

Corporate and Non-Corporate Tax Growth

Corporate tax collections increased to Rs 9.24 lakh crore, up from Rs 7.90 lakh crore, while net collections stood at Rs 7.42 lakh crore, compared to Rs 6.83 lakh crore last year. Non-corporate tax collections, which include personal income tax, rose to Rs 9.53 lakh crore, with net collections touching Rs 7.97 lakh crore, a sharp rise from Rs 6.50 lakh crore.

Advance Tax & Refunds Surge

The substantial rise in advance tax collections, reaching Rs 7.56 lakh crore, was a major contributor. Refunds issued during the period totaled Rs 3.39 lakh crore, marking a 42.49% increase from the previous fiscal year.

Securities Transaction Tax (STT)

STT collections witnessed a significant jump to Rs 40,114 crore, compared to Rs 21,628 crore last year, reflecting stronger market activities.

Tax Filing Trends

Income tax return filings saw an increase, with over 8.09 crore returns filed for FY24, up from 7.40 crore in FY23. However, only 6.68% of India’s population filed income tax returns, with a notable number of individuals reporting zero taxable income.

Fiscal Deficit and Economic Implications

The surge in direct tax collection is crucial for meeting the government’s fiscal deficit targets, signaling a positive trend in India’s economic recovery and financial management. The rise in both corporate and personal income tax collections indicates a robust economic performance, despite challenges.

Summary of the news