NEW DELHI: India’s net direct tax collections rose by 17.7% to reach Rs 19.58 lakh crore in FY24 on account of significant growth in personal income tax. The collections slightly exceeded the revised estimates of Rs 19.45 lakh crore by 0.7%, as per the government data.
The original direct tax collection target was Rs 18.23 lakh crore, which was later revised to Rs 19.45 lakh crore. Presently, collections have surpassed both the initial and revised estimates by 7.7% and 0.7% respectively, despite a significant increase in refunds.
The surge in Personal Income Taxes elevated its share to 53.3% from 50.06% previously, while Corporate Taxes’ contribution decreased to 46.5% from 49.6%.
Direct taxes consist of personal income tax (including securities transaction tax) and corporate income tax (CIT). An increase in direct taxes signals growth in both personal income and business profitability. The Net Personal Income Tax collection (including securities transaction tax or STT) in FY 24 stood at R10.44 lakh crore with a growth of 25.23% year-on-year. Meanwhile, the provisional net corporate tax collection in FY24 stood at Rs 9.11 lakh crore, indicating a 10.26% growth compared to the previous year’s collection of R 8.26 lakh crore.
“Refunds of R3.79 lakh crore have been issued in the FY 2023-24 showing an increase of 22.74% over the refunds of R 3.09 lakh crore issued in FY 2022-23,” the government said in a statement.
Commenting on the direct tax collection numbers, Sumit Singhania, Partner, Deloitte India said, “As the Indian economy wades through general election in Q2, continued growth in direct tax collections signifies macro-economic buoyancy which is reassuring from the standpoint of continuity of fiscal discipline, which ought to allow the incoming administration to hit the policy reforms road running, keeping the goal of improving taxpayers services at the core of tax reforms agenda.”