Direct Tax Collection
India collected more direct taxes during the current fiscal year than expected and above pre-pandemic levels. The Finance Ministry said that the net direct tax collection for FY22 increased 48.4% over FY21 and 42.5% over FY20. According to the statement, it is 34.96% greater than in FY19, before the epidemic began. The amount is higher than both the budget’s and the revised estimate’s respective projections of Rs. 11.08 lakh crore and Rs. 12.50 lakh crore. As the bank continues to update its data, the numbers are anticipated to rise. Additionally, the amount of advance tax collected increased by 40.75% over FY21, 50.56% over the same time in FY20, and 30.82% over FY19.
Surge in Direct Tax Collections and Tax Elasticity
According to data from the Direct Tax Collections for the Financial Year 2022–23 as of mid–June, net collections increased by 45% from the prior year. Corporation tax has the highest percentage of the total amount of Net Direct Tax collected, followed by Personal Income Tax (PIT), which includes Security Transaction Tax (STT), and other taxes.
Corporation Tax receipts of 74,356 crores and Personal Income Tax receipts, which comprise the Security Transaction Tax of 1.11 lakh crore, make up the direct receipts from April 1 to June 15. Over the same time the previous year, revenues totaled 92,762 crores.
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