India's Net Direct Tax Collections Rise 20 Per Cent to Rs 18.9 Lakh Crore

This substantial rise in net collections primarily comprises Corporation Tax at Rs 9.1 lakh crore and Personal Income Tax, including Securities Transaction Tax at Rs 9.7 lakh crore

The direct tax collection of the Centre after adjusting for refunds has grown 19.88 per cent annually to Rs 18.9 lakh crore in FY2023-24, compared to the corresponding period of the preceding Financial Year (FY2022-23), where collections amounted to Rs 15.7 lakh crore. This substantial rise in net collections primarily comprises Corporation Tax (CIT) at Rs 9.1 lakh crore (net of refund) and Personal Income Tax (PIT), including Securities Transaction Tax (STT) at Rs 9.7 lakh crore (net of refund).

Finance Minister Nirmala Sitharaman had set an ambitious target of Rs 19.45 lakh crore for direct tax collections during the FY24 in the Budget speech, a significant increase from the initial projection of Rs 18.20 lakh crore.

Moreover, the provisional figures of Gross collection of Direct Taxes (before adjusting for refunds) for FY2023-24 stand at a staggering Rs 22,27,067 crore, showcasing a robust growth of 18.74 per cent over the collections of FY2022-23, which amounted to Rs 18,75,535 crore.

The Gross collection includes Corporation Tax (CIT) at Rs 10,98,183 crore and Personal Income Tax (PIT) including Securities Transaction Tax (STT) at Rs 11,25,228 crore. Additionally, minor head-wise collections comprise Advance Tax of Rs 9,11,534 crore; Tax Deducted at Source of Rs 10,44,511 crore; Self-Assessment Tax of Rs 1,73,296 crore; Regular Assessment Tax of Rs 73,548 crore; and Tax under other minor heads of Rs 24,177 crore.

The data also reveals a substantial growth in Advance Tax collections for FY2023-24, totaling Rs 9,11,534 crore, showcasing a significant increase of 22.31 per cent compared to the corresponding period of the immediately preceding Financial Year (FY2022-23), where collections amounted to Rs 7,45,246 crore.

Furthermore, refunds amounting to Rs 3,36,808 crore have been issued in FY2023-24 until March 17, 2024, witnessing a notable increase of 12.74 per cent over the refunds issued during the same period in the preceding year, which amounted to Rs 2,98,758 crore.