The provisional figures of Direct Tax collections up to 10th March 2023 have been released, and they continue to show steady growth. Gross Direct Tax collections for FY 2022-23 are at Rs. 16.68 lakh crore, which is 22.58% higher than the gross collections for the corresponding period of last year. Meanwhile, net collections stand at Rs. 13.73 lakh crore, representing a 16.78% YoY increase.
After refunds of Rs. 2.95 lakh crore were issued during 1st April 2022 to 10th March 2023, the net growth in Corporate Income Tax (CIT) collections is at 13.62%, and that in Personal Income Tax (PIT) collections is at 20.73% (PIT only)/ 20.06% (PIT including STT). The refunds issued this year are 59.44% higher than those issued during the same period in the preceding year.
The growth rate for Corporate Income Tax (CIT) in terms of gross revenue collections is 18.08%, while that for Personal Income Tax (PIT) (including Securities Transaction Tax (STT)) is 27.57%. Adjusting for refunds, the net growth in CIT collections is 13.62%, while that in PIT collections is 20.73% (PIT only) or 20.06% (PIT including STT).
The Direct Tax collections up to 10th March 2023 represent 96.67% of the total Budget Estimates and 83.19% of the Total Revised Estimates of Direct Taxes for FY 2022-23.
The steady growth recorded in Direct Tax collections for FY 2022-23 is a positive sign for the Indian economy. The government has been focusing on increasing compliance and widening the tax base, and these efforts are bearing fruit. The increase in tax collections will help the government meet its expenditure targets and support various developmental initiatives.
