India witnessed a significant surge in its net direct tax collections, marking a remarkable 17.7 percent year-on-year increase to reach Rs 19.58 crore by the conclusion of the fiscal year ending March 2024, as announced by the tax department on Sunday.
The combined net collections from income and corporate taxes, constituting the bulk of direct taxes, surpassed both the Budget and revised estimates for the 2023-24 financial year by substantial margins. Exceeding the Budget estimates by Rs 1.35 lakh crore (7.40 percent) and the revised estimates by Rs 13,000 crore, this achievement highlights a robust performance in tax revenue.
In the interim Budget presented on February 1, the government had set a target of Rs 19.45 lakh crore for direct tax collection in FY24 (April 2023 to March 2024), which was notably surpassed. Consequently, the gross tax collection target, as per the revised estimate, was set at Rs 34.37 lakh crore for FY24.
Reflecting the buoyancy in the economy and the increasing income levels of individuals and corporations, the provisional figures indicate a substantial growth in gross direct tax collections by 18.48 percent to Rs 23.37 lakh crore for FY 2023-24. After factoring in refunds, the net proceeds surged by 17.7 percent to Rs 19.58 lakh crore.
Notably, refunds amounting to Rs 3.79 lakh crore were issued in FY 2023-24, as confirmed by the CBDT. The provisional direct tax collections for FY 2023-24 surpassed the previous fiscal year's figures significantly, with net collections reaching Rs 19.58 lakh crore compared to Rs 16.64 lakh crore in FY 2022-23. The Budget Estimate for FY 2023-24 was initially set at Rs 18.23 lakh crore but was later revised to Rs 19.45 lakh crore.
The provisional direct tax collections, net of refunds, exceeded the Budget Estimate by 7.40 percent and the Revised Estimates by 0.67 percent. Gross direct tax collections before adjusting for refunds showed a substantial growth of 18.48 percent over the previous fiscal year.
The provisional figures also highlight notable increases in both corporate and personal income tax collections. Gross corporate tax collection rose by 13.06 percent to Rs 11.32 lakh crore, while net corporate tax collection showed a growth of 10.26 percent, reaching Rs 9.11 lakh crore.
Similarly, gross personal income tax collection, including Securities Transaction Tax (STT), surged by 24.26 percent to Rs 12.01 lakh crore, with net personal income tax collection, including STT, growing by 25.23 percent to Rs 10.44 lakh crore.
Furthermore, refunds issued in FY 2023-24 increased by 22.74 percent to Rs 3.79 lakh crore compared to Rs 3.09 lakh crore issued in FY 2022-23.
In addition to direct taxes, even the indirect tax collection for FY24 surpassed the revised estimates (RE) of Rs 14.84 lakh crore by a significant margin, aided by a record GST collection, according to a statement by a top government official, CBIC chairman Sanjay Kumar Agarwal.
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