Robust Growth in Net Direct Tax Collection: At Rs 10.6 trillion, rises 23.4% in Apr-Nov

In the first eight months of the current fiscal year, net direct tax collection has witnessed a substantial surge, reaching Rs 10.64 trillion. This marks a remarkable 23.4% increase compared to the corresponding period last year. The Ministry of Finance reported that this collection represents 58.34% of the Budget Estimates (BE) for the fiscal year.

Key Figures

Net Tax Collection: Rs 10.64 trillion, up by 23.4% from the previous year.
Gross Collections: Before issuing refunds, gross collections experienced a growth of 17.7%, reaching Rs 12.67 trillion in the April-November period.
Refunds: Refunds amounting to Rs 2.03 trillion were issued from April to November.

Refund Initiatives

The Ministry of Finance highlighted a special initiative addressing cases where refunds had initially failed. These refunds were subsequently issued to validated bank accounts, contributing to the overall refund amount.

Projections for the Fiscal Year

For the entire fiscal year, the government anticipates collecting Rs 18.23 trillion through direct taxes (including personal income tax and corporate tax) and Rs 15.38 trillion from indirect taxes (comprising GST, customs, and excise).

Government’s Stance

A senior finance ministry official revealed earlier in the week that the government is likely to adhere to the budgeted estimate, maintaining a total tax collection target of Rs 33.61 trillion for the current fiscal in the revised estimates.

Current Status

As of now, direct tax collection has increased by approximately 20%, while indirect tax has seen a 5% rise, indicating a positive trajectory towards achieving the budgeted targets.