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NEW DELHI : New Delhi: The Centre’s direct tax collection after adjusting for refunds has grown 19.88% annually to ₹18.9 trillion, the Central Board of Direct Taxes (CBDT) said in a statement on Tuesday quoting provisional figures for up to Sunday.
In the comparable period of the last financial year, the tax authority had collected ₹15.76 trillion.
Net direct tax receipts, which also include four instalments of advance tax payment, now account for over 97% of the revised full-year target of ₹19.45 trillion.
Finance minister Nirmala Sitharaman had raised the direct tax collection target for the current fiscal year when she presented the FY25 union budget on 1 February.
That was on account of a sharp upward revision of ₹ 1.21 trillion in personal income tax collection for this year as the economy showed strong growth momentum.
The official estimate for economic growth this financial year is 7.6% but government economists expect the economy to beat this forecast.
For the next financial year, the government has assumed a 13% increase in direct tax collections at ₹21.98 trillion.
Prior to the due date for remitting the fourth instalment of advance tax on 15 March, the direct tax authority had run an e-campaign reaching out to assessees by email and text messages to optimize voluntary compliance.
That campaign targeted those who have entered into significant financial transactions but have not paid commensurate taxes, as per information available with the tax department.
The tax authority is leveraging information sourced from various agencies such as banks, insurers and registrars to assess whether the income reported by assessees reflect the tax liability accurately.
It has also been expanding the scope of taxes deducted at source (TDS) as an effective way of ensuring compliance.
The Centre has collected ₹9.14 trillion as corporate tax and ₹9.72 trillion as tax on personal income after adjustment of refunds so far this financial year.
Personal income tax collection includes proceeds of securities transaction tax (STT) levied on sale of listed securities.
The tax authority had issued ₹3.36 trillion in tax refunds this fiscal year till Sunday, which is a 12.7% improvement over the refunds issued in the same time a year ago.
Last year, the tax authority issued ₹2.98 trillion in refunds in the same time.
The CBDT said that gross direct tax receipts before adjusting for refunds so far this financial year stood at ₹22.27 trillion, showing an improvement of 18.74% over the gross collections from corporate and personal income tax in the same period a year ago.
This is made up of ₹10.98 trillion in taxes on corporate income and ₹11.25 trillion in taxes on personal income including proceeds from STT.
TDS remained a vital mode of tax collection for the government.
The Centre has collected TDS of ₹10.44 trillion so far this fiscal, the highest-yielding source of collection. In the same period, advance tax of ₹9.1 trillion was collected, showing an improvement of over 22%.
About three-fourths of the advance tax came from corporations and the rest from personal income tax payers, data from the ministry showed.
A near 20% year-on-year growth in direct tax revenue underlines continued momentum of tax policy reforms carried out round the year, said Sumit Singhania, partner at Deloitte India.
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Published: 19 Mar 2024, 08:59 PM IST
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