Direct tax revenue up by 23.51% by mid-September ‘23

Higher advance tax payments from corporate entities primarily drove this increase

September 20, 2023

These collections account for 47.45% of the full-year budget estimates, which stand at INR 18.23 trillion

Corporate income tax (CIT) encompassed INR 416,217 crore

Personal income tax (PIT) consisted INR 447,291 crore

Refunds totalling approximately INR 1.22 trillion were issued by September 16

The net direct tax revenue surged by 23.51%, surpassing INR 8.65 trillion by mid-September 2023, according to an announcement from the Finance Ministry. Higher advance tax payments from corporate entities primarily drove this increase.

Currently, these collections account for 47.45% of the full-year budget estimates, which stand at INR 18.23 trillion. This consistent growth in tax collection was propelled by a substantial 21% increase in advance tax payments. It’s worth noting that September 15 marked the deadline for the second instalment of advance tax payments for the fiscal year 2023-24.

In an official statement, the Ministry specified that the net direct tax collection encompasses INR 416,217 crore from corporate income tax (CIT) and INR 447,291 crore from personal income tax (PIT), including Securities Transaction Tax (STT).

The net direct tax collection, totalling INR 8,65,117 crore as of September 16 for the current fiscal year, reflects a remarkable growth of over 23.51%, as reported by the Ministry.

Advance tax collections, reaching INR 3.55 trillion by mid-September, exhibited a substantial 21% rise compared to the corresponding period in the previous financial year when it stood at INR 2.94 trillion. Within this advance tax collection, CIT contributed INR 2.80 trillion, and PIT contributed INR 74,858 crore.

Refunds totalling approximately INR 1.22 trillion were issued by September 16. On a gross basis, the total direct tax collection for the financial year 2023-24 amounted to INR 9.87 trillion, indicating an impressive 18.29% growth compared to the INR 8.34 trillion collected during the same period in the preceding financial year.

The 2023-24 budget has projected direct tax collection to exceed INR 18.23 trillion, marking a 9.75% increase over the previous fiscal year’s collection of INR 16.61 trillion.

Source: Financial Express

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