Finance Minister Nirmala Sitharaman on Friday urged tax officers to maintain the growth in direct tax collections at at least 17% in FY24, the level achieved in the previous financial year.
A 17% annual growth in direct collections (net of refunds) would mean the receipts would be Rs 1.27 trillion more than the budget estimate of Rs 18.23 trillion for FY24.
With the trends indicating that it is within reach, the Centre’s finances would be further boosted in FY24 to comfortably meet any additional expenditures that might arise over the budget estimate for FY24.
In 2022-23, the centre’s direct tax collections were at Rs 16.67 trillion, Rs 2.47 trillion more than the budget estimate of 14.2 trillion for the year.
“So, you make sure 17% remains 17% (this year as well),” Sitharaman told officers at the inaugural of the newly constructed Income Tax Office in Kochi.
The government has estimated direct tax receipts at Rs 18.23 trillion for FY24, a 9.4% increase over the actuals of FY23.
According to official data released on November 9, direct tax collection (net of refunds) stood at Rs 10.6 trillion which is 21.82% higher than the net collections for the corresponding period of last year. This collection was 58.15% of the budget estimate of Rs 18.23 trillion for FY24.