Direct tax collection surge 17% in current fiscal

New Delhi: The Central Board of Direct Taxes (CBDT) revealed that the direct tax collection in the country surged by 17% in the current financial year 2022-23. The direct tax collection so far has reached at  Rs 13.73 lakh crore. This is  83% of the revised target for the full fiscal.

‘The provisional figures of direct tax collections up to March 10, 2023, continue to register steady growth. Direct tax collections up to March 10, 2023, show that gross collections are at Rs 16.68 lakh crore, which is 22.58 per cent higher than the gross collections for the corresponding period of last year,’ the CBDT said in a statement.

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The direct tax collection, net of refunds, stands at Rs 13.73 lakh crore. This is  16.78% higher than the net collections for the corresponding period of last year. This collection is 96.67% of the total Budget Estimates and 83.19% of the total revised estimates of direct taxes for FY2022-23.

‘The growth rate for corporate income tax (CIT) is 18.08%, while that for PIT (including STT) is 27.57%. After adjustment of refunds, the net growth in CIT collections is 13.62% and that in PIT collections is 20.73% (PIT only)/ 20.06% (PIT including STT).Refunds amounting to Rs 2.95 lakh crore have been issued during April 1, 2022, to March 10, 2023, which are 59.44% higher than refunds issued during the same period in the preceding year,’ added the authority.

As per the authority, the growth in direct tax collection was driven by PIT collections. 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.