Direct tax collections exceed estimates in FY24; jump 18% to Rs 19.58 lakh crore

India's net direct tax collections surged by a massive 17.7 per cent year-on-year to Rs 19.58 crore in the fiscal year ended March 2024, surpassing even revised estimates by a wide margin, the tax department said on Sunday.

Net collections of income and corporate taxes, which make up for most of the direct taxes, in 2023-24 financial year exceeded the Budget estimates by Rs 1.35 lakh crore (7.40 per cent) and the revised estimates by Rs 13,000 crore.

The government had raised the target for direct tax collection in FY24 (April 2023 to March 2024) to Rs 19.45 lakh crore in the interim Budget presented on February 1. With this, the gross tax collection target as per the revised estimate stood at Rs 34.37 lakh crore for FY24.

While gross direct tax collections (provisional) for the FY 2023-24 rose 18.48 per cent to Rs 23.37 lakh crore, net proceeds (after accounting for refunds) surged 17.7 per cent to Rs 19.58 lakh crore, reflecting buoyancy in the economy and rise in income levels of individuals and corporates. Refunds aggregating to Rs 3.79 lakh crore have been issued in FY 2023-24, the CBDT said in a statement.

"The provisional figures of Direct Tax collections for the financial year (FY) 2023-24 show that net collections are at Rs 19.58 lakh crore, compared to Rs 16.64 lakh crore in the preceding financial year i.e. FY 2022-23," it said, adding the Budget for 2023-24 fiscal had pegged the collections for the year at Rs 18.23 lakh crore, which were revised to Rs 19.45 lakh crore later.

"The provisional Direct Tax collections (net of the refunds) have exceeded the Budget Estimate by 7.40 per cent and Revised Estimates by 0.67 per cent," it said.

The gross collection (provisional) of Direct Taxes (before adjusting for refunds) for the FY 2023-24 stood 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 was up 13.06 per cent to Rs 11.32 lakh crore as compared to the gross corporate tax collection of Rs 10 lakh crore of the preceding year.

The Net Corporate Tax collection (provisional) in FY 2023-24 at Rs 9.11 lakh crore showed a growth of 10.26 per cent over the net corporate tax collection of Rs 8.26 lakh crore of the preceding year.

The Gross Personal Income Tax collection including Securities Transaction Tax (provisional) in FY 2023-24 at Rs 12.01 lakh crore was up 24.26 per cent over previous year's collection of Rs 9.67 lakh crore.

The Net Personal Income Tax collection including STT (provisional) in FY 2023-24 at Rs 10.44 lakh crore showed a growth of 25.23 per cent over preceding fiscal year's figure of Rs 8.33 lakh crore.

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 statement added.

Even the indirect tax collection for FY24 has exceeded the revised estimates (RE) of Rs 14.84 lakh crore by "a handsome margin", helped by a record GST mop-up, a top government official said.

CBIC chairman Sanjay Kumar Agarwal, in a letter to field officials, recently said, "I am happy to inform that the indirect tax collections for the Financial Year 2023-24, including Customs and Union Excise Duty have exceeded the Revised Estimates by a handsome margin."