Direct tax collection increases by 20% to Rs 18.90 lakh crore, effect of increase in advance tax

Due to increase in advance tax collection in the current financial year (2023-24), the net direct tax collection till March 17 has increased by 19.88 percent to more than Rs 18.90 lakh crore. The Central Board of Direct Taxes (CBDT) said in the statement that the total direct tax collection till March 17 has been Rs 18,90,259 crore, of which Rs 9,14,469 crore is corporate tax and personal income tax, besides Rs 9,72,224 crore. Securities Transaction Tax (STT) of Rs. crore is also included.

Advance tax collection till March 17, 2024 stood at Rs 9.11 lakh crore, which is 22.31 percent more than the same period of the last financial year. Rs 6.73 lakh crore has been received as advance tax from companies while the contribution of individual income taxpayers is Rs 2.39 lakh crore. Meanwhile, till March 17 in the current financial year, refunds worth about Rs 3.37 lakh crore have also been issued.

On gross basis, the total direct tax collection before refund adjustment comes to Rs 22.27 lakh crore. This is 18.74 percent more than the same period a year ago.

CBDT said, “Provisional data of direct tax collection till March 17 in the financial year 2023-24 shows that the net tax collection is Rs 18,90,259 crore whereas in the same period of the last financial year it was Rs 15,76,776 crore. This is 19.88 percent more than the financial year 2022-23.”

In the revised estimate of direct tax collection, the government had expected the receipts for the entire financial year to be Rs 19.45 lakh crore. On the growth figures in direct tax collections, Sumit Singhania, partner at Deloitte India, said that the nearly 20 per cent growth in tax revenue underlines the continued pace of tax policy reforms throughout the year. He said that the increase in advance tax collection reflects increasing voluntary compliance among different categories of taxpayers.