India’s net direct tax collections, which include personal income tax and corporate tax, rose by 18 per cent to Rs 16.61 lakh crore for the 2022-23 financial year that ended on March 31, exceeding the revised budget estimates (RE).
The high direct tax collections indicate that both individual earnings and profits made by companies have gone up on the back of robust economic growth. The high tax mop-up will help to keep the fiscal deficit in check and make more resources available to finance infrastructure projects such as highways as well as social welfare schemes.
The gross collection of direct taxes (before adjusting for refunds) for 2022-23 stands at Rs 19.68 lakh crore, a growth of 20.33 per cent over the gross collection of Rs 16.36 lakh crore in financial year 2021-22, according to a finance ministry statement issued today.
The Budget Estimates (BE) for direct tax revenue in the Union Budget for 2022-23 were fixed at Rs 14.20 lakh crore, and the Revised Estimates (RE) were pegged higher at Rs 16.50 trillion.
The net direct tax collections, which include taxes from individuals and corporations, have exceeded the BE by 16.97 per cent and RE by 0.69 per cent, the ministry added.
Tax refunds worth over Rs 3.07 lakh crore were issued in 2022-23.