Gross direct tax collections up by 24.58% until Jan ‘23

The increase was a result of an upsurge in personal income tax mop-up

January 12, 2023

Gross direct tax collections reached INR 14.71 trillion

Net direct tax collections increased by 19.55% from January 2022

Corporate Income Tax (CIT) increased by 19.72%

Personal Income Tax (PIT) increased by 30.46%

India’s gross direct tax collections increased by 24.58% to INR 14.71 trillion till January 10 this year compared to the same month last year, as a result of an upsurge in personal income tax mop-up, according to a government report.

Net direct tax collections increased by 19.55% from January 2022, standing at INR 12.31 trillion, after adjusting refunds. Media reports said that the government has reached 86.68% of its FY23 budget estimates for direct taxes, pegged at INR 14.20 trillion.

Experts said that direct taxes are expected to exceed the budget estimate by INR 2.2 trillion on a gross basis. They further added that the additional expenditure will be considerably absorbed by direct taxes and central goods and services tax.

According to the government report, collections from Corporate Income Tax (CIT) increased by 19.72%, and Personal Income Tax (PIT) increased by 30.46%. After adjustments for refunds, growth in CIT collections stood at 18.33%, and for PIT collections it stood at 20.97%.

Media reports further added that refunds amounting to INR 2.40 trillion have been issued between April 1, 2022, and January 10, 2023, which are 58.74% higher than refunds issued during the same period last year.

Source: Economic Times

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