Direct tax collections rise 23.51% to ₹8.65 lakh cr in FY24

The direct tax collections jumped 23.51% year-on-year (YoY) to ₹8,65,117 crore in the April to September period so far, as against ₹7,00,416 crore in the same period last year, according to the ministry of finance.

According to the finance ministry, the net direct tax collections as of September 16, 2023,  include corporation tax (CIT) at ₹4,16,217 crore (net of refund) and personal income tax (PIT) including securities transaction tax (STT) at ₹4,47,291 crore (net of refund).

"The gross collection of ₹9,87,061 crore includes corporation tax at ₹4,71,692 crore and personal income tax including securities transaction Tax at ₹5,13,724 crore. The provisional figures of Gross collection of Direct Taxes (before adjusting for refunds) for the Financial Year 2023-24 stand at ₹9,87,061 crore compared to ₹8,34,469 crore in the corresponding period of the preceding financial year, showing a growth of 18.29%," says the ministry.

"Minor head-wise collection comprises advance tax of ₹3,55,481 crore; tax deducted at source of ₹5,19,696 crore; self-assessment tax of ₹82,460 crore; regular assessment tax of ₹21,175 crore; and tax under other minor heads of ₹8,248 crore," it adds.

According to the ministry, provisional figures of advance tax collections for Financial Year 2023-24 as of September 16, 2023, stand at ₹3,55,481 crore, against advance tax collections of ₹2,94,433 crore for the corresponding period of FY23, showing a growth of 20.73%. The advance tax collection of ₹3,55,481 crore as of September 16, 2023, comprises corporation tax at ₹2,80,620 crore and personal income tax at ₹74,858 crore.

The ministry of finance says that refunds amounting to ₹1,21,944 crore have also been issued in the FY 2023-24 till September 16, 2023.

In the union budget for FY24, finance minister Nirmala Sitharaman proposed to increase the personal income tax rebate limit to ₹7 lakh under the new tax regime. "Currently, those with income up to ₹5 lakh do not pay any income tax in both old and new tax regimes. I propose to increase the rebate limit to ₹7 lakh in the new tax regime. Thus, persons in the new tax regime, with income up to ₹7 lakh will not have to pay any tax," she said. The FM also proposed to change the tax structure in the new income tax regime with 6 income slabs starting from ₹2.5 lakh by reducing the number of slabs to five and increasing the tax exemption limit to ₹3 lakh. This will provide major relief to all taxpayers in the new regime, she said.