In a fiscal update that highlights India's robust tax revenue performance, the Ministry of Finance announced a significant year-over-year increase in Gross Direct Tax collections for the financial year 2023-24. As of November 9, 2023, collections reached Rs. 12.37 lakh crore, representing a growth of 17.59% compared to the same period in the previous year.
After adjusting for tax refunds totaling Rs. 1.77 lakh crore processed between April and November, the net Direct Tax collection stood at Rs. 10.60 lakh crore, marking an impressive surge of 21.82% over the last year's figures during the same timeframe. This net collection accounts for over half of the budgeted estimates for Direct Taxes for the current fiscal year, sitting at 58.15%.
The breakdown of tax revenue growth is particularly noteworthy in both Corporate Income Tax (CIT) and Personal Income Tax (PIT). While CIT showed a gross revenue growth rate of 7.13%, it was PIT, inclusive of Securities Transaction Tax (STT), that soared with a growth rate of 28.29%. The net collections further emphasize this trend, with CIT and PIT recording year-over-year growths of 12.48% and 31.77%, respectively.
These provisional figures underscore a steady growth trajectory in India's Direct Tax collections, reflecting the country's expanding tax base and improved compliance measures. The positive fiscal indicators suggest a strong economic momentum as the nation progresses through the second half of the financial year.
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