5 December 2022

New Delhi: The gross collection of tax on corporate and individual earnings jumped nearly 24 percent so far in the current fiscal year to Rs 8.98 lakh crore, the tax department said on Sunday.

This includes a 32 percent growth in personal income tax ( including Securities Transaction Tax ) mop-up and a 16.73 percent increase in corporate tax revenues over the same period last year.

After adjusting for refunds, the net direct tax collections between April 1 – Oc tober 8 stood at Rs 7.45 lakh crore, which is 52.46 percent of the Budget estimates ( BE ) for the full-year tax collection target, the department said.

Gross direct tax revenue
Gross direct tax revenue

The Budget had estimated direct tax collection at Rs 14.20 lakh crore this fiscal higher than Rs 14.10 lakh crore collected last fiscal ( 2021-22 ). Tax on corporate income and individual makes up for direct taxes.

” Direct Tax collections up to 8th October 2022 show that gross collections are at Rs 8.98 lakh crore which is 23.8 percent higher than the gross collections for the corresponding period of last year, ” the tax department said in a statement.

Refunds amounting to Rs 1.53 lakh crore have been issued between April 1 – October 8, an increase of 81 percent over the corresponding period last year. After adjusting
refunds, net direct tax collection stood at Rs 7.45 lakh crore, 16.3 percent higher over the year-ago period. This includes a 16.25 percent increase in PIT ( including STT ) and 16.29 percent in corporate tax.

Tax collection is an indicator of economic activity in any country. But in India, the robust tax collection was despite a slowdown in industrial production and exports.

Some analysts believe that economic growth has lost momentum but corporate profits are keeping the engine running. Merchandise exports have lost on the momentum of last year’s surge and shrunk by 3.5 percent in September.

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