In another indication of a post-pandemic economic recovery, India’s direct tax collections continue to grow at a robust pace in the current financial year so far. Direct tax collections jumped 23 per cent year-on-year to Rs 7 lakh crore during the financial year 2022-23 so far.
The direct tax collection figures are “a clear indicator of the revival of economic activity , as also the result of the stable policies of the government, focusing on simplification and streamlining of processes and plugging of tax leakage through effective use of technology”, the finance ministry said in a statement on Sunday.
It said, “The figures of direct tax collections for the FY 2022-23, as on September 17, 2022, show that net collections are at Rs 7,00,669 crore, compared with Rs 5,68,147 crore in the corresponding period of the preceding financial year i.e. FY 2021-22, representing an increase of 23 per cent.”
The net direct tax collection of Rs 7,00,669 crore (net of refund) includes a corporation tax of Rs 3,68,484 crore and a personal income tax (PIT), including securities transaction tax (STT), of Rs 3,30,490 crore, according to the statement.
The gross collection of direct taxes (before adjusting for refunds) for the FY 2022-23 stands at Rs 8,36,225 crore compared with Rs 6,42,287 crore in the corresponding period of the preceding financial year 2021-22, registering a growth of 30 per cent over collections of FY 2021-22.
The ministry also said the country’s gross collection of Rs 8,36,225 crore includes a corporation tax of Rs 4,36,020 crore and a personal income tax (PIT), including securities transaction tax of Rs 3,98,440 crore. Minor head-wise collection comprises an advance tax of Rs 2,95,308 crore; tax deducted at source of Rs 4,34,740 crore; self-assessment tax of Rs 77,164 crore; regular assessment tax of Rs 20,080 crore; and tax under other minor heads of Rs 8,933 crore.
“The cumulative advance tax collections for the first and second quarter of the FY 2022-23 stand at Rs 2,95,308 crore as on September 17, 2022, against advance tax collections of Rs 2,52,077 crore for the corresponding period of the immediately preceding financial year i.e FY 2021-22, showing a growth of 17 per cent. The advance tax collection of Rs 2,95,308 crore comprises corporation tax (CIT) of Rs 2,29,132 crore and personal income tax (PIT) of Rs 66,176 crore,” the statement said.
It also added that there has been a remarkable increase in the speed of processing of income tax returns filed during the current fiscal, with almost 93 per cent of the duly verified ITRs having been processed till September 17, 2022.
“This has resulted in faster issue of refunds with almost a 468 per cent increase in the number of refunds issued in the current financial year. Refunds amounting to Rs 1,35,556 crore have been issued in the FY 2022-23 till September 17, 2022, as against refunds of Rs 74,140 crore issued during the corresponding period in the preceding Financial Year 2021-22, showing a growth of over 83 per cent, it added.