News | Tax

Robust Growth in Direct Tax Collections Sets Positive Tone for Fiscal Year

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.



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Changes in Our Business Model
25th Sept 2020
Greetings from Moneylife Advisory Services
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
What remains the same:
  • Recommendations on insurance, investment and Lion stocks, will continue as a part of the MAS premium subscription. Our strength has always been research and this will remain available to you through our recommendations.
  • The magazine and all textual content will remain as part of the service
  • We will have to suspend the restructuring tool.
What changes:
  • The interactions in Ask / Handholding will offer investment advice but not specific to your situation. It will offer information on investment products and also clarify your doubts about various financial products. It will be a forum for information, not for advice. This will be implemented with immediate effect and our guidelines in Ask, reflect this now.
Over the next few weeks our site and our communication to you will reflect these and other additional changes.
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
Debashis Basu