Net direct tax collection up 11.18% at ₹3.80 lakh cr so far in FY24: FinMin

The net direct tax collection so far in FY24 surged 11.18% to ₹3.80 lakh crore as against ₹3.41 lakh crore in the same period last year, the Ministry of Finance said on Sunday. Of this, the corporate tax (CIT) collection stood at ₹1.57 crore (net of refund), whereas personal income tax (PIT) collection, including securities transaction tax (STT) stood at more than ₹2.22 lakh crore.

The gross direct tax collection so far in FY24 stood at ₹4.19 lakh crore against ₹3.72 lakh crore in the corresponding period of FY23, registering a growth of 12.73%. Of this, ₹1.87 lakh crore accounted for corporation tax and ₹2.31 lakh crore accounted for personal income tax, including securities transaction tax (STT). The minor head-wise collection comprises of advance tax of ₹1.17 lakh crore, tax deducted at source of ₹2.72 lakh crore, self-assessment tax of ₹18,128 crore, regular assessment tax of ₹9,977 crore, and tax under other minor heads of ₹2,607 crore.

For the April to June period of FY24 so far, the advanced tax collection stood at ₹1.17 lakh crore against ₹1.03 lakh crore for the corresponding period of FY23, thus registering a growth of 13.7%. Of this, ₹92,784 crore accounted for corporation tax, whereas ₹23,991 crore accounted for personal income tax. In the Union Budget for FY 2023-24, presented on February 1 by Finance Minister Nirmala Sitharaman, the direct tax collection was seen rising 10.5% from FY23. According to budget estimates, the corporate tax collection is expected to stand at ₹9.23 lakh crore, whereas personal income tax collected is expected to stand at ₹9.01 lakh crore in FY24.

The refunds amounting to ₹39,578 crore have been issued so far in FY24, up 30.13%, as against ₹30,414 crore in the corresponding period of FY23.

In FY23, the direct tax collection surged by 17.63% to a whopping ₹16.61 lakh crore compared with ₹14.12 lakh crore in the preceding fiscal year. The direct tax collection was higher than the revised estimates and budget estimates of the union budget 2022-23 by 0.69% and 16.97%, respectively. In FY23, the provisional gross corporate tax collection stood at ₹10.04 lakh crore, thus registering a growth of 16.91% over the gross corporate tax collection of ₹8.59 lakh crore of the preceding year.

The gross personal income tax collection (including securities transaction tax) in FY23 stood at ₹9.60 lakh crore, registering a growth of 24.23% as against ₹7.73 lakh crore in the same period last year.

Notably, in her union budget speech, Sitharaman increased the income tax rebate under the new tax regime to ₹7 lakh from ₹5 lakh earlier. The overhauling of the new tax regime is expected to put more money into the hands of salaried taxpayers, giving a big boost to consumption.