Net direct tax collection grows 19% so far in FY24

The net direct tax collection so far this fiscal rose 19.41 per cent to Rs 14.70 lakh crore, reaching about 81 per cent of the full-year target, the income tax department said on Thursday.

"The provisional figures of Direct Tax collections up to January 10, 2024, continue to register steady growth," the Central Board of Direct Taxes (CBDT) said in a statement.

Direct Tax collection, net of refunds, stood at Rs 14.70 lakh crore which is 19.41 per cent higher than the net collection for the corresponding period of last year.

This collection is 80.61 per cent of the total Budget Estimates of Direct Taxes for FY 2023-24, the CBDT said.

The government has budgeted to collect Rs 18.23 lakh crore from direct taxes (personal income tax and corporate tax), 9.75 per cent higher than Rs 16.61 lakh crore mopped up last fiscal.

Refunds amounting to Rs 2.48 lakh crore have been issued during April 1, 2023 to January 10, 2024.

The gross collections of direct taxes are at Rs 17.18 lakh crore, 16.77 per cent higher than the gross collection for the corresponding period of last year.

The growth rate in gross Corporate Income Tax (CIT) and Personal Income Tax (PIT) is 8.32 per cent and 26.11 per cent respectively.

After adjustment of refunds, the net growth in CIT collections is 12.37 per cent and that in PIT collections is 27.26 per cent.

Commenting on the numbers, Deloitte India Partner Rohinton Sidhwa said it is the strongest indication that the economy is growing and measures to identify and increase reporting are yielding gains.

Shardul Amarchand Mangaldas & Co Partner Gouri Puri said the government's multi-pronged approach to formalise the economy through the development of digital payments infrastructure, ensuring a record trail through the GST registration system, increasing digital data sources through third party reporting under TDS and TCS etc. seem to have contributed to higher compliance and direct tax collections.