Net direct tax collections rose by 17.63 per cent to Rs 16.61 lakh crore in 2022-23, exceeding the Revised Estimates of Rs 16.5 lakh crore. The provisional gross collection of direct taxes (before adjusting for refunds) for 2022-23 stood at Rs 19.68 lakh crore, an increase of 20.33 per cent over the gross collection of Rs 16.36 lakh crore in FY 2021-22, the finance ministry said.
Direct tax data accounted for in the last few days has shown a sharp increase. As of April 1, the net direct tax collections for FY23 had stood at Rs 16.16 lakh crore, as per data shared internally in the income tax department.
Now, the provisional figures of direct tax collections for the financial year 2022-23 show that net collections are at Rs 16.61 lakh crore, compared to Rs 14.12 lakh crore in the preceding year of 2021-22. The Budget Estimates (BE) for direct tax revenue were fixed at Rs 14.20 lakh crore for 2022-23 and the Revised Estimates (RE) were then pegged higher at Rs 16.50 lakh crore.
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. Refunds worth over Rs 3.07 lakh crore were issued in 2022-23.
Out of the total gross tax collections, corporate tax collections stood at Rs 10,04,118 crore, rising by 16.91 per cent year-on-year, while provisional gross personal income tax collection (including STT) in 2022-23 stood at Rs 9,60,764 crore, an increase of 24.23 per cent from previous year.
“Income Tax Act and Portal has seen substantial revamping in the last few years. Tools like AIS/TIS (annual information statement/taxpayer information summary) lead to the data of taxpayers being pulled and automatically reconciled by the dept. And expansion of TDS/TCS provisions help tracking the transactions from the source and up the value stream. These lead to substantial gains in terms of collection,” Vivek Jalan, Partner, Tax Connect Advisory, said.
