Gross Direct Tax Collection in India Surges by 17.6%, Reaching Rs 12.3 Trillion Until November

India's gross direct tax collection saw a substantial 17.6% surge, reaching Rs 12.37 trillion from April 1 to November 9, as reported by the Central Board of Direct Taxes (CBDT) on Friday. The net direct tax collection, after factoring in refunds, stood at Rs 10.6 trillion, marking a significant 21.82% increase compared to the corresponding period last year.

The government has set a target of 10.5% growth in revenues from corporate and individual income tax, aiming to reach Rs 18.23 trillion in the current financial year. The net collection, according to the direct tax administration, already represents 58.15% of the Budget Estimates (BE) for direct taxes for 2023-24.

Breaking down the figures, the growth rate for corporate income tax (CIT) on a gross basis is at 7.13%, while personal income tax (PIT) exhibits a robust growth rate of 28.29%. 

The growth rate for personal income tax (PIT), which includes securities transaction tax (STT), has notably increased by 27.98%. After accounting for refunds, the net growth in (CIT) collection is 12.48%, and for (PIT), it stands impressively at 31.77%, inclusive of STT, making the overall growth 31.26%.

The sources suggest an anticipated 10.1% year-on-year growth in gross collection and a slightly higher net collection of 11.1% for the fiscal year 2023-24. 

Despite a slow start, corporation tax collection in September experienced a remarkable 27% year-on-year growth, supported by healthy advance tax inflows, almost reaching 49% of the Budget Estimate (BE) for the year. On the other hand, personal income tax collection is steadily approaching the Budget Estimate.

Also Read: What is Income Tax Rebate? Types, Eligibility of Tax Rebate

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