Gross Direct Tax Collections for FY 2022-23 Register Growth of 25.90%

The Gross collection of Direct Taxes has registered a growth of 25.90 percent which stood at 13,63,649 crore rupees in the financial year 2022-23. The Gross collection in the corresponding period stood at 10,83,150 crore rupees. According to the Finance Ministry data, the Net Direct tax collection for FY 2022-23 stood at 11,35,754 crore rupees, registering a growth of 19.81 percent. The Net Direct tax collection for the corresponding period was recorded at 9,47,959 crore rupees.

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More About This: The Net Tax Collection:

• The robust tax mop-up shows the economy rebounded from pandemic lows with rise in earnings of both companies and individuals.
• The net tax collection also witnessed growth this financial year. As per the latest data by the I-T department, the net collection rose by 19.81% in FY2022-23.
• It stood at ₹11,35,754 crore compared to ₹9,47,959 crore in the corresponding period of the preceding financial year, which is about 80% of the full-year Budget target.
• The net direct tax collection of ₹11,35,754 crore includes Corporation Tax (CIT) at ₹6,06,679 crore (net of refund) and personal income Tax (PIT) including Securities Transaction Tax (STT) at ₹5,26,477 crore (net of refund).

Govt efforts regarding this:

There has been a remarkable increase in the speed of processing of income tax returns filed during the current fiscal, with almost 96.5% of the duly verified ITRs having been processed till 17.12.2022. This has resulted in faster issues of refunds with nearly a 109% increase in the number of refunds issued in the current financial year. Refunds amounting to Rs. 2,27,896 crore have been published in the FY 2022-23 till 17.12.2022, as against refunds of Rs.1,35,191 crore issued during the corresponding period in the preceding Financial Year 2021-22, showing a growth of over 68.57%.

This Years Target of The Govt:

The Budget had estimated direct tax collection of ₹14.20 lakh crore this financial year, higher than the ₹14.10 lakh crore collected last fiscal (2021-22). Tax on corporate and individual income makes up for direct taxes. 

Types of Taxation:

Direct Tax Code(DTC):

• The Task Force, initially headed by former CBDT Member (Legislation) Arbind Modi and later on by Akhilesh Ranjan,was constituted in November 2017 in order to review the Income-tax Act and to draft a new Direct Tax Law.
• The proposals in the draft code are aimed at bringing more certainty to taxation of personal and corporate income and capital gains, and at bringing the gist of numerous judicial pronouncements made since 1961, when the current tax law came into force, in one place for easy reference.