New Delhi: The department today of Income tax said that the Direct Tax collections continue to register steady growth this year and have recorded an rise of 23.8 percent to reach Rs 8.98 lakh crore when compared to the corresponding period last year.
This includes a 32 percent growth in personal income tax mop up and 16.73 percent increase in corporate tax revenues over the same period last year. After adjusting for refunds, the net direct tax collections between April 1 - October 8 stood at Rs 7.45 lakh crore, which is 52.46 percent of the Budget estimates for the full year tax collection target, the department said. The Budget had estimated direct tax collection at Rs 14.20 lakh crore this fiscal, higher than Rs 14.10 lakh crore collected last fiscal Tax on corporate and individual income makes up for direct taxes.
"Direct Tax collections up to 8th October, 2022 show that gross collections are at Rs 8.98 lakh crore which is 23.8 percent higher than the gross collections for the corresponding period of last year," the tax department said in a statement. Refunds amounting to Rs 1.53 lakh crore have been issued between April 1 to October 8, an increase of 81 percent over the corresponding period last year. After adjusting refunds, net direct tax collection stood at Rs 7.45 lakh crore, 16.3 percent higher over the year-ago period.
This includes a 16.25 percent increase in PIT (including STT) and 16.29 percent in corporate tax. Tax collection is an indicator of economic activity in any country. But in India, the robust tax collection was despite a slowdown in industrial production and exports. Some analysts believe that the economic growth has lost momentum but corporate profits are keeping the engine running. Merchandise exports have lost on the momentum of last year's surge and shrunk by 3.5 percent in September.
Trade deficit has nearly doubled in the first six months. IIP growth was subdued at 2.4 percent in July while 'core sector' hit a nine-month low of 3.3 percent in August. Collection from levy of tax on goods and services sold (GST) has flattened at around Rs 1.45-1.46 lakh crore per month. The RBI last month cut its production of India's GDP growth in the current fiscal to 7 percent from 7.2 percent previously estimated. Other rating agencies too have lowered the economic growth projection for India citing impact of the geopolitical tensions, tightening global financial conditions and slowing external demand.
Not Received the Income Tax Refund Yet? Find out the Reasons Here
