tax

The Indian government has witnessed a significant increase in direct tax collection during the period from April to July, reflecting a robust economic recovery. According to provisional figures released by the Finance Ministry, the gross collections for this fiscal year have reached ₹5.17 lakh crore as of July 9, marking a substantial 14.65% surge compared to the same period last year. Meanwhile, net direct tax collection has grown by nearly 16% to ₹4.75 lakh crore.

The Revenue Department, in an official press note, stated that refunds totaling Rs.42,000 crore were issued between April 1, 2023, and July 9, 2023. This amount represents a 2.55% increase from the refunds issued during the corresponding period in the previous year. Remarkably, the current collection constitutes 26.05% of the total budget estimates for direct taxes in the fiscal year 2023-24. The government has set a target of ₹18.23 lakh crore for direct tax collection in the current fiscal, which is 9.75% higher than the amount collected in the previous fiscal year of ₹16.61 lakh crore.

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Over the past decade, India’s gross direct tax collection has witnessed a remarkable growth of 173% until the fiscal year 2022-23. As the previous fiscal year concluded, data released in April showed a 16.97% surplus over the budget-estimated ₹11,000 crore, indicating a positive trend in tax revenue. The gross direct tax collection for the last fiscal year exceeded ₹19.68 lakh crore, with the corporate tax collection growing by 16.91% to over ₹10.04 lakh crore. Additionally, the gross personal income tax collection saw a significant increase of 24.23%, reaching over ₹9.60 lakh crore.

These figures demonstrate the Indian economy’s resilience and its gradual recovery from the impact of the pandemic. The government’s efforts to strengthen tax administration, broaden the tax base, and improve compliance have yielded positive results. The robust growth in direct tax collection reflects the overall economic progress of the country.

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