36% surge in direct tax collections to nearly Rs 6.5 lakh crore – Times of India

NEW DELHI: Direct tax collections have shot up 35.5% to nearly Rs 6.5 crore so far in the financial year, indicating that revenue flow remains strong.
Net collections, after factoring in returns, are estimated to have increased by over 30% to around Rs 5.3 lakh crore. This is around 37% of the Budget estimate for the full financial year.
“Refunds amounting to Rs 1.19 lakh crore have been issued during 1st April, 2022 to 8th September, 2022, which are 65.3% higher than refunds issued during the same period in the preceding year,” the Central Board of Direct Taxes said in a statement.
The numbers will provide comfort to policymakers seeking to ensure that fiscal deficit stays within the budgeted level of 6.4% of GDP despite higher spending on food and fertiliser subsidies and other expenditure.
The Centre is quite upbeat on the revenue front given that GST collections have stayed buoyant with the mop-up topping Rs 1.4 lakh crore for the last six months. Based on current trends, the government is expecting to overshoot the full-year target.
On the direct tax front, personal income tax has gone up by over 44% on a gross basis (28% net of refunds), while corporation tax collections so far in the financial year were up almost 26% (with net growth of 33%), the statement said.
With advance tax collections due by September 15, the government is hoping that the momentum on the direct tax front continues.

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