Direct Tax Collections Surpass Budget By 1.35 Lakh Crore FY 2023-24

The Finance Ministry revealed on Sunday that direct tax collections for the fiscal year 2023-24 (FY24) surged by nearly 18 percent compared to the previous fiscal year (2022-23), according to official data. All the figures provided by the ministry were provisional.

Provisional figures reveal that net direct tax collections for FY 2023-24 stand at an impressive Rs. 19.58 lakh crore, surpassing the BE by Rs. 1.35 lakh crore, or 7.40%, and the RE by Rs. 13,000 crore.

This remarkable achievement reflects the resilience of India's economy despite global challenges and underscores the effectiveness of the government's fiscal policies. The growth trajectory in direct tax collections is indicative of increased economic activity and improved tax compliance across various sectors.

Gross direct tax collections for FY 2023-24 stood at Rs. 23.37 lakh crore, marking a significant growth of 18.48% year-on-year. This growth is driven by both corporate and personal income tax segments, showcasing a broad-based improvement in tax revenues.

In the corporate tax domain, gross collections reached Rs. 11.32 lakh crore, reflecting a growth of 13.06% over the previous year. Net corporate tax collections for FY 2023-24 stand at Rs. 9.11 lakh crore, indicating a growth of 10.26%. These figures highlight the resilience and stability of India's corporate sector amidst evolving economic dynamics.

Similarly, in the personal income tax segment, gross collections surged to Rs. 12.01 lakh crore, representing an impressive growth of 24.26%. Net personal income tax collections also witnessed a significant uptick, reaching Rs. 10.44 lakh crore, reflecting a growth of 25.23%.

This robust performance in personal income tax collections underscores increased compliance and economic activity at the individual level.

Despite the surge in collections, the government has remained proactive in issuing refunds, totaling Rs. 3.79 lakh crore in FY 2023-24.

This represents a commendable increase of 22.74% over the refunds issued in the previous fiscal year, underscoring the government's commitment to maintaining a taxpayer-friendly environment.

India's direct tax collections for FY 2023-24 paint a promising picture of economic resilience and fiscal stability. The surpassing of estimates and significant growth in collections reflect the efficacy of the government's fiscal policies and the buoyancy of India's economic landscape.

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