NEW DELHI: Net direct tax collections rose 17.7% to nearly Rs 19.6 lakh crore during the last financial year, surpassing the revised estimate and providing comfort to the Centre to close the year with healthier than expected fiscal deficit.
The Centre has already surpassed the indirect tax collection target for 2023-24 and some savings are expected. The Centre had budgeted for a fiscal deficit of 5.8% of GDP in the revised estimates for the year.One of the variables to watch out for will be the nominal GDP numbers, with the revised data due to be released.
In the revised estimates, the Centre had accounted for net direct tax collections, comprising income tax, corporation tax and securities transaction tax of Rs 19.5 lakh crore. According to provisional numbers released by the Central Board of Direct Taxes on Sunday, collections were estimated at a shade under Rs 23.4 lakh crore, a growth of 18.5%. During the year, refund payments rose 22.7% to Rs 3.8 lakh crore, an official statement said.
It also pegged the gross corporation tax mop-up at Rs 11.3 lakh, 13% higher than the previous year, while on a net basis it went up 10.3% to Rs 9.1 lakh crore. Gross personal income tax collections, including STT, were estimated 24.3% higher at just over Rs 12 lakh crore while on a net basis it was Rs 10.4 lakh crore, rising 25.2% compared to the previous year.
The Centre has seen good tax buoyancy in recent years, helping it better the overall collection target for the second consecutive year. Officials have argued that better monitoring and processing of data, as well as sharing of the indirect tax and other database, have helped tracked those who are not disclosing their income accurately. The income tax authorities are relying on multiple data streams, including high value transactions, investments and cash transactions to get taxpayers to declare their income. The data is often used to nudge them to pay taxes.
The Centre has already surpassed the indirect tax collection target for 2023-24 and some savings are expected. The Centre had budgeted for a fiscal deficit of 5.8% of GDP in the revised estimates for the year.One of the variables to watch out for will be the nominal GDP numbers, with the revised data due to be released.
In the revised estimates, the Centre had accounted for net direct tax collections, comprising income tax, corporation tax and securities transaction tax of Rs 19.5 lakh crore. According to provisional numbers released by the Central Board of Direct Taxes on Sunday, collections were estimated at a shade under Rs 23.4 lakh crore, a growth of 18.5%. During the year, refund payments rose 22.7% to Rs 3.8 lakh crore, an official statement said.
It also pegged the gross corporation tax mop-up at Rs 11.3 lakh, 13% higher than the previous year, while on a net basis it went up 10.3% to Rs 9.1 lakh crore. Gross personal income tax collections, including STT, were estimated 24.3% higher at just over Rs 12 lakh crore while on a net basis it was Rs 10.4 lakh crore, rising 25.2% compared to the previous year.
The Centre has seen good tax buoyancy in recent years, helping it better the overall collection target for the second consecutive year. Officials have argued that better monitoring and processing of data, as well as sharing of the indirect tax and other database, have helped tracked those who are not disclosing their income accurately. The income tax authorities are relying on multiple data streams, including high value transactions, investments and cash transactions to get taxpayers to declare their income. The data is often used to nudge them to pay taxes.
