Home   »   Economy and Finance   »   Gross direct tax collection increases by...

Gross direct tax collection increases by over 23 % to Rs 8,98,000 crore in current financial year

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.

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

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:

In order to garner income for the government to finance social projects, tax is collected from individuals and corporations via direct tax and indirect tax. These two tax collections form the government’s revenue. Revenue receipts can be of two types — non-tax revenue and tax revenue. Tax revenue is the income gained by the government through taxation.
Tax revenue forms a part of the Receipt Budget, which in turn is part of the Annual Financial Statement of the Union Budget. Union Budget keeps the account of the government’s finances for the fiscal year that runs from April 1 to March 31. Union Budget is classified into Revenue Budget and Capital Budget.

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.

Leave a comment

Your email address will not be published. Required fields are marked *