Direct Tax collection jumps 24% to Rs 8.98 lakh crore in first half of FY23
After adjusting refunds, direct tax collection stood at Rs 7.45 lakh crore, 16.3 per cent higher than the net collection for the corresponding period a year ago, the statement said.
Direct Tax collection registered a steady growth in the gross collection and stood at Rs 8.98 lakh crore up to October 8, 2022, said a statement from the Ministry of Finance on Sunday. It is 23.8 per cent higher than the collection for the corresponding period of last year.
Tax on corporate and individual income makes up for direct taxes.
After adjusting refunds, direct tax collection stood at Rs 7.45 lakh crore, 16.3 per cent higher than the net collection for the corresponding period a year ago, the statement said.
"This collection is 52.46 per cent of the total Budget Estimates of Direct Taxes for FY 2022-23," it added.
Between April 1 and October 8, refunds amounting to Rs 1.53 lakh crore have been issued. It is 81 per cent higher than refunds issued during the same period in the preceding year.
Tax collection is an indicator of economic activity in any country. But in India, the robust tax collection was despite a slowdown in industrial production and exports. Some analysts believe that the economic growth has lost momentum but corporate profits are keeping the engine running.
"So far as the growth rate for corporate income tax (CIT) and personal income tax (PIT) in terms of gross revenue collection is concerned, the growth rate for CIT is 16.73 per cent, while that for PIT (including STT) is 32.30 per cent," the Central Board of Direct Taxes (CBDT) said.
Following the adjustment for refunds, the net growth in CIT and PIT collections is 16.29% and 17.35%, respectively.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.