Direct Tax Collections Surpass Rs 3.8 Lakh Crore, Marking an Impressive 11.2% Growth in FY24

19 Jun 2023 , 09:39 AM

The Union government has announced that it has collected an impressive sum of Rs 3.8 lakh crore in direct taxes during the first two-and-a-half months of the financial year 2023-24. This information was disclosed by the finance ministry on June 18, highlighting a significant growth rate compared to the previous year.

Key Highlights: 

Increased Collections: As of June 17, the direct tax collection stood at 11.2 %t higher than the corresponding period in the previous financial year. The collected amount comprises Rs 1.57 lakh crore in corporate taxes and Rs 2.22 lakh crore in personal income taxes, including Securities Transaction Tax.

Surpassing Budget Estimates: The rate of growth in tax collections has exceeded the government’s expectations. In the Union Budget for 2023-24, Finance Minister Nirmala Sitharaman had projected a 10.5 % increase in direct tax collections compared to the previous year.

Higher Refunds: Without adjusting for refunds, the direct tax collection until June 17 amounted to Rs 4.19 lakh crore, reflecting a substantial 12.7 % year-on-year growth. Refunds worth Rs 39,578 crore have been issued so far in 2023-24, witnessing a growth of 30.1 % compared to the same period in the previous year.

Advance Tax Collection: The filing of advance taxes for the first quarter of the new financial year contributed to the overall growth in tax collections. As of June 17, the total advance tax collection reached Rs 1.17 lakh crore, showing a significant year-on-year increase of 13.7 percent.

Indirect Tax Collections: The growth in indirect tax collections followed suit, with April witnessing an all-time high of Rs 1.87 lakh crore, which slightly eased to Rs 1.57 lakh crore in May.

As per the data, the Union government’s direct tax collections for the first two-and-a-half months of 2023-24 have surpassed expectations, showcasing an encouraging trend for the country’s economy. The higher tax collections, coupled with increased refunds and advances, indicate positive momentum for the financial year ahead.

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