India: FY24 net direct tax collections exceed budget estimation by 7.4%

Business Monday 22/April/2024 07:23 AM
India: FY24 net direct tax collections exceed budget estimation by 7.4%

New Delhi: Gross direct tax collections for the Financial Year (FY) 2023-24 in India touched Rs. 19.58 lakh crore, compared to Rs 16.64 lakh crore in FY 2022-23, reflecting an increase of 17.70 per cent.

According to a release from the Union Ministry of Finance, the Budget Estimates (BE) for Direct Tax revenue in the Union Budget for FY 2023-24 were set at Rs. 18.23 lakh crore. However, the provisional Direct Tax collections (net of refunds) have exceeded the BE by a margin of 7.40 per cent.

Furthermore, they surpassed the Revised Estimates (RE) by Rs. 13,000 crore, with RE fixed at Rs. 19.45 lakh crore.

The Gross collection (provisional) of Direct Taxes (before adjusting for refunds) for FY 2023-24 stands at Rs. 23.37 lakh crore, showing a growth of 18.48 per cent over the previous fiscal year.

A direct tax is a tax that a person or organization pays directly to the entity that imposed it. Examples include income tax.

Breaking down the figures, the Gross Corporate Tax collection (provisional) in FY 2023-24 reached Rs. 11.32 lakh crore, reflecting a growth of 13.06 per cent over the previous year. Similarly, the Net Corporate Tax collection (provisional) reached Rs. 9.11 lakh crore, marking a growth of 10.26 per cent.

In the realm of Personal Income Tax, the Gross collection (including STT) surged to Rs. 12.01 lakh crore in FY 2023-24, showing a remarkable growth of 24.26 per cent over the previous year. The Net Personal Income Tax collection (including STT) reached Rs. 10.44 lakh crore, indicating a substantial growth of 25.23 per cent.

Moreover, refunds totaling Rs. 3.79 lakh crore were issued in FY 2023-24, showed an increase of 22.74 per cent over the refunds issued in FY 2022-23 according to the data by the Ministry of Finance release.