NEW DELHI: As of June 17, 2023–24 direct tax revenues were Rs. 3,79,760 crore, up 11.18% from Rs. 3,41,568 crore during the same period of the previous fiscal year, the Finance Ministry said on Sunday.
Corporation tax (CIT) was collected for Rs 1,56,949 crore (net of refunds) and personal income tax (PIT) with securities transaction tax (STT) was collected for Rs 2,22,196 crore (net of refunds) in the net direct tax collection of Rs 3,79,760 crore.
Before accounting for refunds, the gross direct tax collection for 2023–24 is Rs 4,19,338 crore as opposed to Rs 3,71,982 crore for the same time in the previous fiscal, representing an increase of 12.73%.
As of June 17, the advance tax collections for the first quarter of 2023–24 were Rs 1,16,776 crore, up 13.70% from the advance tax collections of Rs 1,02,707 crore for the equivalent period of the fiscal year immediately prior.
Direct tax revenues refer to the income generated by the government through direct taxes imposed on individuals and entities. These taxes are typically levied on personal income, corporate profits, and property. Direct tax revenues play a crucial role in funding government operations, public services, and infrastructure development.
Governments use various methods to collect direct tax revenues, such as the progressive income tax system, where tax rates increase with income levels, or the corporate tax on profits earned by businesses. Property taxes are also a form of direct taxation, often imposed on real estate holdings.
Effective management of direct tax revenues is crucial for governments to maintain fiscal stability and meet their financial obligations. It requires balancing the need to generate revenue with considerations of equity, economic efficiency, and the impact on taxpayers. Governments often rely on tax authorities, tax collection agencies, and systems to ensure the accurate assessment, collection, and enforcement of direct taxes.
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