Net direct tax collection grew 21 per cent to over Rs 4.62 lakh crore so far this fiscal, on higher advance tax payment by corporate.
The first instalment of advance tax, which was due on June 15, showed collection rose 27.34 per cent to Rs 1.48 lakh crore.
This includes Corporation Income Tax (CIT) at Rs 1.14 lakh crore and Personal Income Tax (PIT) at Rs 34,470 crore.
The net direct tax collection of Rs 4,62,664 crore (as of June 17, 2024) includes CIT at Rs 1,80,949 crore and PIT (including Securities Transaction Tax) at Rs 2,81,013 crore, the Central Board of Direct Taxes (CBDT) said in a statement on Tuesday.
Refunds amounting to Rs 53,322 crore have also been issued in the FY 2024-25 till June 17, 34 per cent higher than refunds issued during the same period in the preceding year.
For April-June 17, gross collection of direct taxes (before adjusting for refunds) stood at Rs 5.16 lakh crore compared to Rs 4.23 lakh crore in the corresponding period of the preceding financial year, showing a growth of 22.19 per cent.
For full fiscal, the interim budget has pegged direct tax collection at Rs 21.99 lakh crore.
Deloitte India Partner Rohinton Sidhwa said validation of economic growth in the Indian economy is taking place in the shape of the increased advance tax collection.
“The growth is showing up in both direct and indirect taxes and is also indicative of a greater formalisation of the economy and better compliance,” Sidhwa said.
Shardul Amarchand Mangaldas & Co Partner Gouri Puri said the year-on-year increase in direct tax collections is a result of India’s growing economy, which is increasingly becoming more digital and formal leading also to higher tax compliance rates.
