India's gross direct tax collections for the fiscal year 2023-24 registered a year-on-year increase of 18%, crossing Rs 11 lakh crore ($146 billion) as of Monday, according to the country's Finance Ministry. The net direct tax collections, after issuing refunds worth Rs 1.5 lakh crore ($19.9 billion), reached Rs 9.57 lakh crore ($127 billion), marking a significant YoY growth of 21.8%.
The data indicates that the current net collections account for more than half (52.5%) of the full-year estimate of Rs 18.23 lakh crore ($242 billion). This aligns with the Centre's budgetary goals, which include gathering Rs 9.23 lakh crore ($122 billion) in corporate taxes and Rs 9.01 lakh crore ($119 billion) in personal income taxes in this fiscal year.
The growth rates for Corporate Income Tax (CIT) and Personal Income Tax (PIT), including Securities Transaction Tax (STT), stand at 7.3% and 29.08% respectively. Excluding STT, PIT growth is slightly higher at 29.53%. In the first five months of the year, corporate and income tax collections rose by 15% and 36% respectively, as per data from the Controller General of Accounts.
A surge in direct tax collections in August was instrumental in limiting the Centre's fiscal deficit to just 36% of the full-year target for FY 2023-24, a positive step towards achieving a broader goal to reduce it below 4.5% by FY2025-26.
After adjusting for refunds, the net growth in corporate tax collections is at a solid 12.39%, while that in personal income tax collections is even more robust at 32.51%. These figures underscore the robust growth in India's tax collections, contributing significantly to the nation's fiscal health.
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