Net Direct Tax Collection Grows by 19 pc in FY'24, Reaching Rs 14.70 Lakh Crore. Image Source: Canva
In a robust fiscal performance, India's net direct tax collection for the ongoing financial year has witnessed a significant upswing, marking a 19.41 per cent surge to Rs 14.70 lakh crore, according to an official statement released by the income tax department. This surge in collections signifies an attainment of approximately 81 per cent of the full-year target set by the government, which had projected to collect Rs 18.23 lakh crore from direct taxes, encompassing personal income tax and corporate tax. This target represents a 9.75 per cent increase from the previous fiscal year's collection of Rs 16.61 lakh crore.
PTI in it report quoted the Central Board of Direct Taxes (CBDT) which emphasized in its statement that the "Direct Tax collection, net of refunds, stands at Rs 14.70 lakh crore, which is 19.41% higher than the net collection for the corresponding period of last year. This collection is 80.61% of the total Budget Estimates of Direct Taxes for FY 2023-24."
Refunds totaling Rs 2.48 lakh crore have been disbursed during the period spanning April 1, 2023, to January 10, 2024. Notably, on a gross basis, direct tax collection up to January 10, 2024, has exhibited steadfast growth.
The gross collections have reached Rs 17.18 lakh crore, showcasing a robust 16.77 per cent increase compared to the corresponding period in the previous fiscal year. Further analysis reveals an 8.32 per cent growth rate in gross Corporate Income Tax (CIT) and an impressive 26.11% growth in Personal Income Tax (PIT).
After factoring in refunds, the net growth in CIT collections stands at 12.37 per cent, while PIT collections have surged by an impressive 27.26 per cent. As the fiscal year progresses, the positive momentum in direct tax collections underscores India's economic resilience and the effectiveness of fiscal policies in buoying government revenues.