FY23 direct tax mop up rises 17.63% to ₹16.61 lakh cr

Direct tax collections for 2022-23 have registered a 17.63% jump to ₹16.61 lakh crore compared with ₹14.12 lakh crore in the preceding financial year.

“The provisional figures of direct tax collections for 2022-23 show that net collections are at ₹16.61 lakh crore, compared to ₹14.12 lakh crore in the preceding financial year, 2021-22, representing an increase of 17.63%,” the ministry of finance said in a release. 

Gokul Chaudhri, President, Tax, Deloitte India said the direct tax collection reflects the improving business performance leveraging on the economic reforms and rebound from the pandemic. "The momentum is certainly welcome as it should lead to greater confidence in the outlook for the new financial year," he added. 

The provisional collection is higher than even the revised estimate for FY23. “The budget estimates (BE) for direct tax revenue in the Union Budget 2022-23 were fixed at ₹14.20 lakh crore, which were revised and the revised estimates (RE) were fixed at ₹16.50 lakh crore. The provisional direct tax collections (net of the refunds) have exceeded the BE by 16.97% and RE by 0.69%,” the ministry added.

The gross collection (provisional)  of direct taxes (before adjusting for refunds) for 2022-23 stands at ₹19.68 lakh crore showing a growth of 20.33% over the gross collection of ₹16.36 lakh crore in 2021-22, according to data from the ministry of finance.

The provisional gross corporate tax collection in 2022-23 stood at ₹10,04,118 crore and has shown a growth of 16.91% over the gross corporate tax collection of ₹8,58,849 crore of the preceding year, the ministry said.

“The gross personal income tax collection (including securities transaction tax) (provisional) in FY23 is at ₹9,60,764 crore and has shown a growth of 24.23% over the gross personal income tax collection (including STT) of ₹7,73,389 crore of the preceding year,” it added.

Continuing with the previous trends of seamless refunds the central board of direct taxes has issued refund of ₹3,07,352 crore in 2022-23. This is up 37.4% over the refunds of ₹2,23,658 crore issued in 2021-22.