Direct tax collection stood at Rs 7.45 lakh crore after giving effect to refunds. It increased by 16.3 per cent than the net collection for the same in last year, informed Central Board of Direct Taxes
The Finance Ministry informed that India’s direct tax collection increased by 24 per cent to Rs 8.98 lakh crore between 1 April to 8 October 2022, on 9 October.
The corporate earnings’ gross collection hiked by 16.74 per cent during 1 April to 8 October. Whereas personal income tax collection climbed 32.30 per cent, according to reports.
Direct tax collection stood at Rs 7.45 lakh crore after giving effect to refunds. It increased by 16.3 per cent than the net collection for the same in last year, as per the statement by Central Board of Direct Taxes (CBDT).
“This collection is 52.46 per cent of the total Budget Estimates of Direct Taxes for FY 2022-23,” it added.
Tax collection in any economy indicates its economic activity in a country. However, in India, the strong tax collection in industrial production and exports sector was despite a slowdown. According to analysts the economic growth has lost momentum however, corporate profits are keeping the pace good.
Last month, the Reserve Bank of India (RBI) lowered its production of India’s GDP growth in the current fiscal to 7 per cent from 7.2 per cent estimated previously. This led to other rating agencies lowering the economic growth projection for India. Reasons cited were impact of the geopolitical tensions, tightening global financial conditions and slowing external demand.
“So far as the growth rate for corporate income tax (CIT) and personal income tax (PIT) in terms of gross revenue collection is concerned, the growth rate for CIT is 16.73 per cent, while that for PIT (including STT) is 32.30 per cent,” said CBDT.
The net growth in CIT collection stood at 16.29 per cent and the PIT collection at 17.35 per cent, after adjusting refunds.
Refunds amounting to Rs 1.53 lakh crore have been given out for the period between 1 April 2022 to 8 October 2022. It was 81 per cent higher than the refunds issued corresponding period in the preceding year, it added.
Merchandise exports lost the pace of last year’s surge and decreased by 3.5 per cent in September. However, trade deficit has almost doubled in the first six months. Index for IndustrialProduction (IIP) growth went down at 2.4 per cent in July and thew ‘core sector’ too hit a low of 3.3 per cent in August in last nine months.
Collection from levy of tax on goods and services sold (GST) has also been teared down nearly at Rs 1.45-1.46 lakh crore per month.