Record Direct Tax Collections Exceed Budget Estimates in FY 2023-24

In a significant development, provisional figures released by the Ministry of Finance reveal that net direct tax collections for the Financial Year (FY) 2023-24 have surpassed Union Budget Estimates by a substantial margin of Rs. 1.35 lakh crore, marking a remarkable increase of 7.40%. The provisional direct tax collections stand at Rs. 19.58 lakh crore, showcasing a robust growth of 17.70% compared to the preceding FY 2022-23.

Exceeding Budget Estimates

The Budget Estimates (BE) for Direct Tax revenue in FY 2023-24 were initially set at Rs. 18.23 lakh crore and were later revised to Rs. 19.45 lakh crore. However, the actual net collections have surpassed both the BE and the Revised Estimates (RE) by 7.40% and 0.67% respectively, underlining the robust performance of direct tax revenue in the fiscal year.

Gross Collection Highlights

The provisional gross collection of direct taxes (before adjusting for refunds) for FY 2023-24 stands at an impressive Rs. 23.37 lakh crore, indicating a substantial growth of 18.48% over the previous fiscal year.

Corporate Tax Collections

The Gross Corporate Tax collection for FY 2023-24 amounts to Rs. 11.32 lakh crore, demonstrating a commendable growth of 13.06% over the preceding year. Meanwhile, the Net Corporate Tax collection for the same period stands at Rs. 9.11 lakh crore, reflecting a growth of 10.26%.

Personal Income Tax Collections

The Gross Personal Income Tax collection (including STT) for FY 2023-24 is reported at Rs. 12.01 lakh crore, exhibiting an impressive growth of 24.26% over the previous fiscal year. The Net Personal Income Tax collection (including STT) for the same period is recorded at Rs. 10.44 lakh crore, reflecting a remarkable growth of 25.23%.

Refunds Issued

In FY 2023-24, refunds totaling Rs. 3.79 lakh crore have been issued, indicating a substantial increase of 22.74% compared to the refunds issued in FY 2022-23.

This exceptional performance in direct tax collections underscores the resilience and strength of the Indian economy, setting a positive trajectory for fiscal stability and growth.