Better compliance and economic recovery helped direct tax collection to surge to almost 13 per cent in the gross term during the first two and half months of current fiscal. First instalment of Advance Tax collection saw a growth of 13.7 per cent
Direct Taxes comprise of Corporate Income Tax (CIT) and Personal Income Tax (PIT).
According to the Central Board of Direct Taxes (CBDT), the figures of Direct Tax collections for FY24, as on June 17 show gross collection surged to around ₹4.19 lakh crore as against ₹3.72 lakh crore during the corresponding period of FY23, registering a growth rate of 12.73 per cent. Similarly, net collection (subtracting refund from gross collection) reached ₹3.80 lakh crore from ₹3.41 lakh crore, showing a growth of 11.2 per cent. Net collection is nearly 20 per cent of budget target.
The government aims to get ₹18.23 lakh crore through direct taxes (net) in FY24. In FY23, the collection was at ₹16.61 lakh crore, compared to ₹14.12 lakh crore in FY22, representing an increase of 17.63 per cent. With strong collection in the first quarter, officials are expecting better collection during the remaining period of the fiscal subject to normal monsoon and not much disturbance at global level.
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The Gross collection includes CIT at about ₹1.87 lakh crore and PIT (Including Securities Transaction Tax) at about ₹2.31 lakh crore. The net collection includes CIT at ₹1.57 lakh crore and PIT at ₹2.22 lakh crore. Refunds amounting to ₹39,578 crore have also been issued in FY24 till June 17 as against refunds of ₹30,414 crore issued during the corresponding period in FY23, showing a growth of 30.13 per cent.
The Advance Tax collections for the first quarter of FY24 stood at about ₹1.17 lakh crore as against ₹1.03 lakh crore for the corresponding period of the immediately preceding fiscal, showing a growth of 13.7 per cent. This collection comprises of CIT at ₹92,784 crore and PIT at ₹23,991 crore. Advance Tax for the first quarter comprises 15 per cent of total advance tax liability of a financial year. Any assesses, individual or entity, whose tax liability is more than ₹10,000 or more after TDS, are required to pay advance tax in four instalments.