Net direct tax collection in this fiscal year jump by 23%

New Delhi:  Data released by the Central Board of Direct Taxes (CBDT) revealed that the net direct tax collections so far this financial year rose by 23% to Rs 700,669 crore. The total net direct tax collection includes corporation tax of Rs 368,484 crore and personal income tax (including securities transaction tax) of Rs 330,490 crore. The net direct tax collections  in the same period of the last fiscal year was at Rs 568,147.

‘The cumulative advance tax collections for the first and second quarter of the FY 2022-23 stand at Rs 295,308 crore as on 17.09.2022, against advance tax collections of Rs 252,077 crore for the corresponding period of the immediately preceding Financial Year i.e FY 2021-22, showing a growth of 17%. The advance tax collection of Rs 295,308 crore comprises corporation tax (CIT) at Rs 229,132 crore and personal income tax (PIT) at Rs 66,176 crore,’ the CBDT statement said.

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Direct taxes are collected from individuals and companies by the supreme tax body in the country. Direct taxes are directly paid by the tax payers. Direct tax include income tax, corporate tax and estate tax. Indirect tax is not paid directly by a person to the government. Indirect tax is collected by an intermediary such as manufacturer, trader or service provider and passed on to the government. The consumer bears the final economic burden of the tax. Indirect tax includes GST, central excise duty and customs.

The net direct tax collection  means the gross tax  collection minus the refund.  The gross collection of direct taxes (before adjusting for refunds) so far stands at Rs 836,225 crore. It was at Rs 642,287 crore in the corresponding period of the preceding financial year. It reported a  growth of 30%. The gross collection includes corporation tax at Rs 436,020 crore and personal income tax (PIT) including securities transaction tax(STT) at Rs 398,440 crore.

The authority has issued  refunds amounting to Rs 135,556 crore this fiscal year. This was at  Rs 74,140 crore during the corresponding period in the preceding financial year 2021-22. Refunds registered a growth of 83%.