Direct tax collections grew 16.8% on year so far in the current fiscal year, led by a robust growth in personal income tax.
According to data released by the finance ministry on Saturday, the collections, net of refunds, was Rs 13.73 trillion until March 10 this fiscal.
“This collection is 96.67% of the total Budget estimates and 83.19% of the total revised estimates (RE) of direct taxes for the fiscal 2022-23,” said an official release.
The RE for the current fiscal have projected direct tax revenue at Rs 16.5 trillion, about 16.2% higher than the initially budgeted target of Rs 14.2 trillion for the fiscal.
Gross collections (pre-refunds) stood at Rs 16.68 trillion on March 10, registering a 22.6% growth from the corresponding period of last year.
Although the pace of growth in direct tax collections has slowed, officials are confident of exceeding the RE. This is based on the expectation that advance tax collections for the fourth tranche ending March 15 will witness a substantial inflow of revenue despite concerns about slowing growth and corporate profitability.
After adjustment of refunds, the growth in corporate income tax collections was 13.62% and that in personal income tax mop up was 20.73% during the period April 1, 2022 and March 10, 2023. The Central Board of Direct Taxes has also issued refunds amounting to Rs 2.95 trillion during the period under review, which is 59.44% higher than refunds issued during the same period in the preceding year.
The pace of growth in direct tax collections had moderated from a near 26% growth up to November 10, 2022 to 19.5% till January 10, and further to 18.4% till February 10 this year.