NEW DELHI: The Union finance ministry on Friday reported 35.46% annualised growth in the gross direct tax revenue at ₹6.48 lakh crore as on September 8 of the current financial year with significant jump in corporate and personal tax collections signifying robust economic recovery, improved compliance and better tax administration.
“Direct tax collection, net of refunds, stands at ₹5.29 lakh crore which is 30.17% higher than the net collections for the corresponding period of last year,” the ministry said in a statement. This collection is 37.24% of the total Budget Estimates (BE) of direct taxes for 2022-23, the finance ministry added.
Refunds amounting to ₹1.19 lakh crore have been issued between April 1 and September 8 of 2022, which are 65.29% higher than refunds issued during the same period in the preceding year, it said.
Gross corporate income tax (CIT) and personal income tax (PIT, including Securities transaction tax or STT) saw 25.95% and 44.37% growth, respectively during this period, it said.
After adjustment of refunds, the net growth in CIT collections is 32.73% and that in PIT collections (including STT) is 28.32%, it added.
Experts said the data show increased business activities along with better margins.
“As the economy continues to recover from the Covid downturn, the efforts at nudging tax payers to better compliance through a combination of technology intervention and data reporting are paying off, and tax collections continue on their upward trajectory,” Rohinton Sidhwa, partner at consultancy firm Deloitte India said.
“It’s expected that a clearer picture will be available by the calendar year end as filings come in for corporate tax returns and audit examinations also complete,” he added.
Amit Singhania, partner at law firm Shardul Amarchand Mangaldas & Co said: “The increase in direct taxes collections is encouraging and is indicative of the fact of robust economic growth. The growth rate of Corporate Income Tax indicates buoyancy in the profitability of India Inc.”