The government had set a budget target of Rs 14.20 lakh crore for direct tax collection, which was revised upwards to Rs.16.50 lakh crore in the RE. For 2023-24 fiscal
Gross direct tax collection in 2022-23 rose by around 20 per cent to Rs 19.68 lakh crore, exceeding the government's revised collection target. Buoyed by personal income tax collection, the gross collection has exceeded the revised estimates (RE), set on February 1, by Rs 2.41 lakh crore or by 16.97 per cent.
After adjusting for refunds, the net income tax paid by individuals and corporates, showed an increase of 18 per cent to Rs 16.61 lakh crore during the fiscal, which ended March 31, 2023. The net direct tax collections have exceeded the BE by 16.97 per cent and RE by 0.69 per cent, the ministry added.
The government had set a budget target of Rs 14.20 lakh crore for direct tax collection, which was revised upwards to Rs.16.50 lakh crore in the RE. For 2023-24 fiscal, which began on April 1, the direct tax mop-up target is Rs 18.23 lakh crore.
"The Gross collection (provisional) of Direct Taxes (before adjusting for refunds) for the FY 2022-23 stands at Rs19.68 lakh crore showing a growth of 20.33 per cent over the gross collection of Rs.16.36 lakh crore in FY 2021-22," the finance ministry said in a statement.
Refunds worth over Rs 3.07 lakh crore were issued during the fiscal, an increase of over 37 per cent over the 2021-22 fiscal. During 2022-23 fiscal, gross corporate tax collection grew 16.91 per cent at over Rs 10.04 lakh crore. Gross personal I-T collection jumped 24.23 per cent to over Rs 9.60 lakh crore.
Deloitte India President Tax Gokul Chaudhri said direct tax collection reflects the improving business performance leveraging on the economic reforms and rebound from the pandemic. Tax Connect Advisory, Partner Vivek Jalan said Income Tax Act and Portal have also seen a substantial revamping in the last few years. Expansion of TDS/TCS provisions helps track the transactions from the source and up the value stream. These led to substantial gains in terms of collection, Jalan added.