Direct tax collection jumps 24% in first half of FY23

The gross collection of corporate tax and direct tax stood at ₹8.98 lakh crore, which is 23.8% higher than the gross collection of taxes in the corresponding year, the data released by the ministry of finance showed. Meanwhile, the direct tax collection, net of refunds, was up 16.3% at ₹7.45 lakh crore, compared to the corresponding period last year. This collection is 52.46% of the total budget estimates of FY2022-23. 

“So far as the growth rate for Corporate Income Tax (CIT) and Personal Income Tax (PIT) in terms of gross revenue collections is concerned, the growth rate for CIT is 16.73% while that for PIT (including STT) is 32.30%,” the government said. 

“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),” it added. 

The income tax (IT) department had earlier said that the tax collections for FY2021-22 were higher by over 9% compared to the FY2018-19, which was the pre-covid period. “This indicates that the simplified tax regime with low rates and no exemptions has lived up to its promise," it added. 

Meanwhile, between April 1 and October 8, this year, the Central Board of Direct Taxes (CBDT) issued IT returns amounting to ₹1.53 lakh crore, which is 81.0% higher than refunds issued during the same period in the preceding year. 

In September, Finance Minister Nirmala Sitharaman outlined the three R’s that the IT department should follow for quick processing of tax returns, speedier issue of refunds, and redressal of grievances. While emphasising the access and process of the IT returns in a quick, efficient and systemic manner, she said that “there should be no excuse for delay in the issue of tax refunds.” 

"What is well within you and never going to change and never needs anything more are these three 'R's," Sitharaman said.

Nitin Gupta, the chairman of CBDT, had earlier said that the e-filing IT returns portal has facilitated the tax return filing of 5.83 crore as of July 31. Of this, a record 72 lakh returns were filed on the portal on a single day. July 31 was the last date for filing IT returns for salaried individuals.

Gupta said that the department will continue to use technology-driven processes in order to ease compliance, and facilitation of taxpayers as well as further improve taxpayer services.