Efficiency of the income tax department has rapidly increased in the last decade with refunds out of the direct tax collection crossing the Rs 2 lakh mark in the current financial year, FY 2024-25, said the government data.
The government data said the direct tax collection in the current financial year, from April 1 till September 17, stood at Rs 9.95 lakh crore with a rise of 16.12% as compared to the same period last year.
This period also witnessed a rise in tax refunds and have risen by 56.49 percent to Rs 2.05 lakh crore as compared with last year.
Securities Transaction Tax collection rose also to Rs 26,154 crore.
Advance tax collection has registered an increase of 22.61 per cent on a year-on-year basis to Rs 4.36 lakh crore. Advance personal income collection has increased by 39.22 per cent. Corporate tax has increased by 18.17 per cent.
Gross direct tax collection including refunds for the period has increased by 21.48 per cent to Rs 12.01 lakh crore.
The number of collections from direct taxes, including personal income tax, corporate tax, and other taxes, through the current financial year has exceeded its target of Rs 22.12 lakh crore with an upsurge of almost 13 per cent from last financial year.
Finance Minister Nirmala Sitharaman has stated that the ITR processing time has reduced significantly, making the refund speedier, from 93 days in 2013 to 10 days now.
This has been accomplished by introducing updated systems and processes for income tax returns along with the simplification of the personal tax regime over the years. This made the method of filing one's tax returns much easier.
The main reason for the increase in the collection of direct tax is the robust GDP growth. The Indian economy grew at the rate of 8.4 percent in FY 2023-24. It is expected to grow at the rate of 7.2 percent in FY 2024-25.
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