Rama Krishna Sangem
Indian economy appears to be strong and sturdy. Net direct tax collections have gone up by around 20 per cent last financial year, 2023-24. So, Finance Minister Nirmala Sitharaman would be happier to meet her financial goals on many parameters as explained in her last budget speech.
The government seems to be within striking distance of meeting the revised estimates (RE) for direct tax collection this financial year and it has to collect around Rs 55,000 crore in 14 days to meet the projections for 2023-24. This is because the government collected Rs 18.9 trillion till March 17, representing a growth rate of 19.88 per cent year-on-year (Y-o-Y).
At Rs 18.9 trillion, collection accounted for over 97 per cent of the RE at Rs 19.45 trillion. Direct tax collection was boosted by a 22.3 per cent Y-o-Y increase in advance tax collection (including refunds) till March 17 of FY24. While corporation tax stood at Rs 9.14 trillion, personal income tax (PIT), including securities transaction tax (STT), was at Rs 9.72 trillion till March 17.
The government refunded Rs 3.37 trillion to taxpayers till March 17. It is an increase of 12.7 per cent over the Rs 2.99 trillion the year ago. Adding refunds, the government collected Rs 22.27 trillion as gross direct taxes as of March 17. That was a growth rate of 18.7 per cent over the Rs 18.75 trillion during the corresponding period of 2022-23. Gross corporation tax stood at Rs 10.98 trillion and PIT, including STT, at Rs 11.25 trillion during the period under review.
Collection from advance taxes grew 22.31 per cent at Rs 9.11 trillion till March 17 this financial year against Rs 7.45 trillion during the corresponding period of the previous financial year. This comprised Rs 6.72 trillion from corporation tax and Rs 2.39 trillion from PIT.
Tax deducted at source was at Rs 10.44 trillion, self-assessment tax at Rs 1.7 trillion, regular assessment tax at Rs 73,548 crore, and tax under other minor heads at Rs 24,177 crore.
