The government's direct tax collection scaled up 41.3 percent on year to 3.55 trillion rupees in Apr-June, Minister of State for Finance Pankaj Chaudhary said in reply to a question in Parliament on Monday.

In the first quarter of the current fiscal year, revenue from indirect taxes, which comprise custom duty, excise duty, service tax, and GST, increased 9.4 percent year over year to 3.44 trillion rupees. The swift economic rebound following COVID-19 and higher compliances as a result of different government actions,  have both contributed to this growth, the minister said.

With a one-month delay, the government distributes comprehensive data on tax collection. The central government's gross tax receipts were expected to reach 27.58 trillion rupees in 2022–23 (April-March), up 9.6 percent from the previously revised forecast for the fiscal year that ended in March. Nirmala Sitharaman, the minister of finance, stated earlier on Sunday that the government's trust-based taxes system has enhanced revenues and increased the number of return filings. The finance minister thanked the department in her address on the 163rd Income Tax Day for collecting the most income ever, i.e. more than Rs 14 lakh crore, in the previous fiscal year and expressed optimism that the momentum will carry over to the current fiscal year as well.

On the strength of substantial rise in mop-up from individual and company tax, direct tax collections soared to Rs 14.09 lakh crore in 2021–22, recording a year-on-year gain of 49.02 percent. The government has estimated that direct tax revenue will be Rs 14.20 lakh crore for the current year. In order to promote ease of living and ease of doing business, the finance minister said that the administration has addressed a number of legacy concerns and rectified structural shortcomings relating to direct taxation.

A trust-based tax system has been ensured by the reforms the government has implemented in recent years. According to the trend of better tax collections and an increase in the number of income tax returns submitted, the taxpayers have supported this trust-based strategy, she said.

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