Direct tax revenue jumps 23.8 percent to Rs 8.98 lakh crore; net collection 52 percent above budget target

Refunds amounting to Rs 1.53 lakh crore have been issued during the period 1st April, 2022 to 8th October 2022.

The Income Tax department today said that the Direct Tax collections continue to register steady growth this year and have recorded an increase of 23.8 per cent to reach Rs 8.98 lakh crore when compared to the corresponding period last year. 

"Direct Tax collection, net of refunds, stands at Rs 7.45 lakh crore which is 16.3% higher than the net collections for the corresponding period of last year. This collection is 52.46% of the total Budget Estimates of Direct Taxes for F.Y. 2022-23," said the department. The Budget had estimated direct tax collection at Rs 14.20 lakh crore this fiscal, higher than Rs 14.10 lakh crore collected last fiscal (2021-22).

The tax department said that the growth rate for Corporate Income Tax (CIT) and Personal Income Tax (PIT) in terms of gross revenue collections stands at 16.73% and 32.30% respectively. "After adjustment of refunds, the net growth in CIT collections is 16.29% and that in PIT collections is 17.35% (PIT only)/16.25% (PIT including STT)," said the department.

Gross Direct Tax collections for FY 2022-23 upto 8th October, 2022 are at Rs. 8.98 lakh crore, higher by 23.8% over gross collections for corresponding period of preceding yr.

Net collections at Rs. 7.45 lakh crore are 16.3% higher than net collections for same period last yr. pic.twitter.com/eyMRvzzNTv

— Income Tax India (@IncomeTaxIndia) October 9, 2022

It added that so far, refunds amounting to Rs 1.53 lakh crore have been issued during the period 1st April, 2022 to 8th October 2022, which is 81.0% higher than refunds issued during the same period in the preceding year.

Tax collection is an indicator of economic activity in any country. In India, the robust tax collection has been recorded despite a slowdown in industrial production and exports.