According to the Central Board of Direct Taxes (CBDT), India's gross direct tax revenues up to November 9 were 17.5% more than the same period last year, at Rs 12.37 trillion. Net receipts, excluding refunds, were 21.8 percent higher throughout the period, totaling Rs 10.6 trillion. The Centre gave a tax refund totaling Rs 1.77 trillion between April 1 and November 9. Currently, tax collection accounts for 58.15 percent of overall Budget Estimates for Fiscal Year 2023-24 (FY24).
The CBDT also stated that the Corporate Income Tax (CIT) has increased by 7.13 percent. The Personal Income Tax (PIT) is up 28.29% this year compared to last. PIT has increased by 27.98% when the Securities Transaction Tax is included. "After adjustment of refunds, the net growth in CIT collections is 12.48 per cent and that in PIT collections is 31.77 per cent (PIT only)/ 31.26 per cent (including STT)," according to the board of directors.
Previously, Business Standard projected that if the current pace in direct tax and goods and services tax (GST) collections continues, India's overall tax receipts in FY24 might exceed the Budget Estimate by a "considerable margin." According to reports, authorities anticipate a 13-14 percent year-on-year increase in GST collection, with the monthly average reaching Rs 1.7-1.8 trillion in 2024-25.
With a collection of Rs 1.72 trillion in October, the largest monthly collection ever after the Rs 1.87 trillion announced in April, the monthly average GST collection this fiscal year is between Rs 1.6 trillion and Rs 1.65 trillion.
"This is due to several policy measures and action plans that the revenue department has prepared and implemented in recent months. These would be fully reflected in the following fiscal year," according to a source at Business Standard. Taking into consideration all direct and indirect taxes, gross collection is expected to rise 10.45% to Rs 33.61 trillion in FY24.
