After collecting for refunds, the net direct tax collection so far this fiscal year is at Rs 11.35 lakh crore, up from Rs 9.47 lakh crore in the same period last year.
In the current fiscal year, India’s overall direct tax receipts have increased by around 26% to more than Rs 13.63 lakh crore. The Central Board of Direct Taxes (CBDT) stated in a statement on Sunday that the gross collection of direct taxes (before adjusting for refunds) for FY23 was Rs 13.63 lakh crore, up from Rs 10.83 lakh crore in the previous fiscal year’s similar period.
After correcting for refunds, net direct tax collection is at Rs 11.35 lakh crore, up from Rs 9.47 lakh crore in the previous fiscal year’s similar period.
Furthermore, reimbursements of about Rs 2.28 lakh crore have been granted till December 17, 2022. This is a 68% increase over the previous fiscal year’s similar period of Rs 1.35 lakh crore. The significant tax mop-up demonstrates that the economy has recovered from epidemic lows, with increases in corporate and household incomes.
This fiscal year’s net tax collection increased as well. According to the most recent figures from the I-T department, net collection increased by 19.81% in FY2022-23.
It amounted at 11,35,754 crore, compared to 9,47,959 crore in the same time the previous fiscal year, representing over 80% of the full-year Budget objective.
The Budget projected direct tax collection of 14.20 lakh crore this fiscal year, up from 14.10 lakh crore the previous fiscal year (2021-22). Direct taxes are offset by income taxes on corporations and individuals.
The overall collection of Rs 13.63 lakh crore comprises Corporation Tax (CIT) of Rs 7.25 lakh crore and Personal Income Tax (PIT) of Rs 6.35 lakh crore, according to the CBDT.
On the other hand, total advance tax revenues for the first, second, and third quarters of FY 2022-23 were at 5,21,302 crore, up from 4,62,038 crore in the same period of FY 2022, representing a 12.83% increase.
The entire amount collected consists of the following taxes: advance tax of Rs. 5.21 lakh crore, tax deducted at source of Rs. 6.45 lakh crore, self-assessment tax of Rs. 1.40 lakh crore, regular assessment tax of Rs. 46,244 crore, and tax under other minor categories of Rs. 11,237 crore.
The total advance tax receipts for the first, second, and third quarters of the current fiscal year were Rs 5.21 lakh crore as of December 17, up from Rs 4.62 lakh crore in the same time last year, representing a 12.83 percent increase.
The CBDT also stated that there has been a significant improvement in the speed with which income tax returns filed during the current fiscal year have been handled, with over 96.5 percent of the lawfully validated ITRs having been processed as of December 17.
“With almost a 109% increase in refunds given in the current fiscal year, this has led to quicker refund issuing, it was noted.