India's gross direct tax collections have exhibited a robust performance, surpassing last year's figures by 17.5%, according to data released by the Central Board of Direct Taxes (CBDT) until November 9. The net collections, excluding refunds, experienced an even more impressive growth of 21.8%, reaching Rs 10.6 trillion during the same period.
As of November 9, the cumulative tax refund issued by the Centre stands at Rs 1.77 trillion. The current tax collection levels represent 58.15% of the total Budget Estimates for the fiscal year 2023-24 (FY24).
Breaking down the direct tax categories, the Corporate Income Tax (CIT) recorded a gross growth of 7.13%, while the Personal Income Tax (PIT) marked a substantial increase of 28.29% compared to the previous year. When including the Securities Transaction Tax (STT), PIT showcased an overall growth of 27.98%.
Adjusting for refunds, the net growth in CIT collections stands at an impressive 12.48%, while PIT collections, considering STT, rose by 31.77% (PIT only) or 31.26% (including STT), as reported by the CBDT.
Anticipating the momentum in direct tax and goods and services tax (GST) collections to persist, experts suggest that India's total tax receipts for FY24 could surpass the Budget Estimate by a significant margin. On the GST front, authorities are foreseeing a year-on-year growth of 13-14%, with a monthly average collection expected to reach Rs 1.7-1.8 trillion in 2024-25.
With October witnessing the highest-ever monthly GST collection of Rs 1.72 trillion, the financial year's monthly average stands between Rs 1.6 trillion and Rs 1.65 trillion. The positive trend in both direct and indirect taxes indicates a projected gross collection growth of 10.45%, reaching Rs 33.61 trillion in FY24.
This robust performance in tax collections bodes well for India's fiscal health, reflecting economic resilience and recovery. The government's strategic policy measures and initiatives are expected to further enhance revenue generation in the upcoming financial year.