Net Direct Tax jumps 22% to Rs 10.6 Lakh Crore so far this FY

Net Direct Tax

Net Direct Tax: Compared to the same period last year, direct tax collections increased by 22% between April and November 9 of the current fiscal year. The Central Board of Direct Taxes released a statement on Friday stating that net direct taxes increased to Rs 10.6 lakh crore, or 58.15% of the fiscal budgetary estimates.

In the current fiscal year, personal income taxes grew at a faster rate than corporate taxes. Experts speculate that this might be the result of conservative business practices and global cues, as companies are likely to wait until the end of the year to take a real-time stocktake.

Provisional figures as on Nov. 9 are as follows:

Gross collections: Rs 12.37 lakh crore (17.59% increase YoY).
Net collections: Rs 10.6 lakh crore (21.82% increase YoY).
Refunds: Rs 1.77 lakh crore.

The Union budget projected that corporate income taxes would bring in Rs 9.22 lakh crore, while personal income taxes would bring in Rs 9 lakh crore, for a total of Rs 18.2 lakh crore.

Read also: Direct Tax Collections up 24% for FY 2022-23 till 10th Feb

According to the CBDT, net growth in corporate income tax collections was 12.48%, while net growth in personal income tax collections and securities transaction tax was 31.26%. Direct taxes were reported to be growing steadily throughout this period.

Although PIT collections are growing by more than 30%, CIT collections still need to increase, according to Deloitte India partner Rohinton Sidhwa.

“A clearer picture should emerge once the filing season concludes at the end of November. The general expectation is that the recent Supreme Court wins that the department has had will also add to tax collections for the current year,” he said.

Partner at Shardul Amarchand Mangaldas & Co. Amit Singhania stated that he anticipates direct tax collections to exceed budgetary estimates due to the growth shown by the numbers.