Direct tax collections hit US$ 14 trillion in FY22

For the FY22-23 budget, the government had estimated direct tax revenue growth at 12% to INR 14.2 trillion.

April 6, 2022

The direct tax collections touched US$ 14 trillion exceeding the revised estimates (RE) by INR 1.5 trillion in FY22.

The total mop-up for FY22 is INR 38,000 crore short of the 2022-23 budget estimates (BE).

The corporate tax collections for FY22 have reached the budget target for FY23, while income tax collections have exceeded the BE for the current fiscal year by INR 33,000 crores.

The securities transactions for tax mop-up amounted to INR 23,000 crore.

In the current fiscal year, the direct tax collections touched approximately US$ 14 trillion for FY22, exceeding the RE by INR 1.5 trillion while also exceeding the estimates for the upcoming fiscal year. For the FY22-23 budget, the government had estimated direct tax revenue growth at 12% to INR 14.2 trillion. If the growth on the actuals for 2021-22 stays the same, the net direct tax collection is expected to reach INR 15.6 trillion. 

The total mop-up for FY22 is about INR 38,000 crore short of the 2022-23 BE, implying that the direct tax collections need to grow by 3.2% to meet the current fiscal year’s target. 

The corporate tax collections for FY22 have already reached the budget target for FY23, while income tax collections have exceeded the BE for the current fiscal year by INR 33,000 crores. The securities transactions for tax mop-up amounted to INR 23,000 crore, thus exceeding the revised estimates of INR 20,000 crore.