The gross direct tax collections has increased by over 23 per cent to eight lakh ninety eight thousand crore rupees in the current financial year as compared to last year. Finance Ministry said, the provisional figures of direct tax collections still continue to register steady growth.
What The Finance Ministry Said:
Direct Tax collection, net of refunds, stands at seven lakh forty five thousand crore rupees which is 16.3 per cent higher than the net collections for the corresponding period of last year. The Ministry said, this collection is over 52 per cent of the total budget estimates of direct taxes for the current fiscal. The refunds amounting to one lakh 53 thousand crore rupees have been issued during 1st April to 8th October this year, which are 81 per cent higher than refunds issued during the same period in the preceding year.
India’s Tax Collection:
Components Of Tax Collection:
Taxes collected from both direct tax and indirect tax are the government’s tax revenue. It includes collections from income tax, corporation tax, customs, wealth tax, tax on land revenue, etc.
Direct tax is the tax that is paid directly to the government by the person or company on whom it is levied. Income tax, wealth tax, corporation tax, and property tax are some examples of direct tax.
Indirect taxes are those that are collected by intermediaries from individuals and corporations who bear the burden of the tax and passed on to the government. Goods and Services Tax (GST) is an example of indirect tax. Corporation tax forms a large chunk of the government’s tax revenue.