Robust Growth in Net Direct Tax Collection Indicates Surge in Economic Activity

Robust Growth in Net Direct Tax Collection Indicates Surge in Economic Activity
Robust Growth in Net Direct Tax Collection Indicates Surge in Economic Activity

The net direct tax collection for the current fiscal year has witnessed a remarkable growth of 16%, reaching Rs 4.75 lakh crore. This surge in collection serves as a clear indicator of increased economic activity. According to the Income Tax department, this figure accounts for 26.05% of the total budget estimates for direct taxes in the full 2023-24 fiscal year, which has been set at Rs 18.23 lakh crore.

Excluding refunds, the net direct tax collection stands at Rs 4.75 lakh crore, showcasing a notable increase of 15.87% compared to the corresponding period in the previous year. During the period from April 1 to July 9, 2023, refunds amounting to Rs 42,000 crore were issued, indicating a growth of 2.55% compared to the same period last year.

The gross collection from direct taxes, which includes income and corporate taxes, has experienced a robust growth of 14.65% to reach Rs 5.17 lakh crore. This impressive growth further reinforces the positive trajectory of economic recovery.

The budget has set a target for the fiscal year 2023-24 to collect direct taxes exceeding Rs 18.23 lakh crore. This target represents a 9.75% increase compared to the collection of Rs 16.61 lakh crore in the previous fiscal year. The current net collection of Rs 4.75 lakh crore already accounts for 26.05% of the total budget estimates, indicating a strong start towards achieving the fiscal goal.