Direct tax collections shoot past budget target by Rs 1.35 lakh cr in 2023-24

NEW DELHI:

The net direct tax collections for the financial year 2023-24 have clocked a double-digit growth to exceed the Union Budget Estimates (BE) by Rs 1.35 lakh crore or 7.4 per cent reflecting the strong fiscal position of the country driven by robust economic growth, data released by the Central Board of Direct Taxes (CBDT) on Sunday showed.

The net direct tax collections, comprising corporate tax and personal income tax shot up to Rs 19.58 lakh crore in 2023-24, compared to Rs 16.64 lakh crore in the preceding financial year, representing a double-digit increase of 17.7 per cent.

The target for direct collections was fixed at Rs 18.23 lakh crore in the Union Budget for 2023-24 and later increased to Rs 19.45 lakh crore in the Revised Estimates (RE). The provisional Direct Tax collections (net of the refunds) have exceeded the BE by 7.40 per cent and RE by 0.67 per cent, CBDT said.

The gross collection (provisional) of Direct Taxes (before adjusting for refunds) for the FY 2023-24 stands at Rs 23.37 lakh crore showing a growth of 18.48 per cent over the gross collection of Rs 19.72 lakh crore in FY 2022-23.

The Gross Corporate Tax collection (provisional) in FY 2023-24 is at Rs 11.32 lakh crore and has shown a growth of 13.06 per cent over the gross corporate tax collection of Rs 10 lakh crore of the preceding year. The Net Corporate Tax collection (provisional) in FY 2023-24 is at Rs 9.11 lakh crore and has shown a growth of 10.26 per cent over the net corporate tax collection of Rs 8.26 lakh crore of the preceding year. This is an indication of the robust economic growth in the economy which has led to higher corporate profits and rising personal incomes.

The Gross Personal Income Tax collection (including STT) in FY 2023-24 is at Rs 12.01 lakh crore and has shown a growth of 24.26 per cent over the Gross Personal Income Tax collection (including STT) of Rs 9.67 lakh crore of the preceding year.

The Net Personal Income Tax collection (including STT) (provisional) in FY 2023-24 is at Rs 10.44 lakh crore and has shown a growth of 25.23 per cent over the Net Personal Income Tax collection (including STT) of Rs 8.33 lakh crore of the preceding year.

Refunds of Rs 3.79 lakh crore have been issued in the FY 2023-24 showing an increase of 22.74 per cent over the refunds of Rs 3.09 lakh crore issued in FY 2022-23.

The buoyancy in tax collections has helped to keep the fiscal deficit in check and strengthened the macroeconomic fundamentals of the economy. A lower fiscal deficit means the government has to borrow less which leaves more money in the banking system for big companies to borrow and invest. This in turn leads to a higher economic growth rate and the creation of more jobs.

A low fiscal deficit also keeps the inflation rate in check which imparts stability to the economy.


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