According to government figures released on Wednesday, India’s gross direct tax collections increased by 24.58% to? 14.71 lakh crore as of January 10 this financial year, helped by an increase in personal income tax receipts. Net direct tax revenues after accounting for refunds were 12.31 lakh crore, up 19.55 percent from the same time in the previous fiscal.
The government has collected 86.68% of the estimated direct tax revenue for FY23, which is estimated at?14.20 lakh crore.
According to economists, overall tax receipts will above the planned projection and act as a buffer against future spending.
Aditi Nayar, chief economist at ICRA, stated, “We expect direct taxes to surpass the budget forecast by?2.2 lakh crore on a gross basis.”
In addition, Nayar anticipates that a healthy overrun in direct taxes and the central goods and services tax will cover a sizable portion of the increased expenses.
Due to higher subsidy payments, the government’s spending for FY23 is anticipated to surpass projected expectations.
On a gross basis, corporate income tax (CIT) collections climbed by 19.72%, while personal income tax (PIT) collections rose by 30.46%.
According to a Central Board of Direct Taxes announcement, “The provisional numbers of direct tax receipts up to 10 January 2023 continue to reflect continuous rise.”
After accounting for reimbursements, the net rise for CIT collections was 18.33%, compared to 20.97% for PIT collections.
Between April 1, 2022, and January 10, 2023, refunds totalling? 2.40 lakh crore were made, which is 58.74% more than what was made during the same time period in the previous year.