12-Aug-2023
2 mins read
India’s fiscal landscape is shining brighter than before, with the Centre’s direct tax collections portraying an optimistic picture. Let’s delve into the numbers to get a clearer understanding of the country’s economic momentum.
A Significant Jump from Last Year
The recent announcement from the Ministry of Finance is promising. As of August 10, the provisional direct tax collections have touched an impressive Rs 6.53 lakh crore. This marks a remarkable growth of 15.73% compared to the same period the previous year.
After Refund Figures
When we account for refunds, the net direct tax revenue stands at Rs 5.84 lakh crore, which is a significant 17.33% increase from the net revenue reported for the same timeframe in the previous year.
Progress Toward Annual Budget Estimates
What’s worth noting is that the Rs 5.84 lakh crore collected so far makes up 32.03% of the total budgeted direct tax estimates for the fiscal year 2023-2024. This puts the Centre in a promising position for meeting its annual targets.
Increased Refunds
From the beginning of April to August 10, refunds totalling Rs 0.69 lakh crore were issued. This showcases a moderate 3.73% increase over refunds provided during the same period in the previous year.
Comparison with the Previous Month’s Data
On comparing it with the previous month’s data, the Finance Ministry’s showed that the gross collections were at Rs 5.17 lakh crore as of July 9. Also, about refunds, Rs 42,000 crore was issued from April 1 to July 9, that is 2.55% more than the corresponding period from the previous year.
Performance at the Beginning of the Fiscal Year
Data shared at the outset of this fiscal year indicated a promising 16.97% lead over the budget-estimated Rs 11,000 crore, which was 0.69% higher than the revised estimate.
Recap of the Previous Fiscal Year’s Performance
The past fiscal year saw commendable growth in direct tax collection, with a 20% increase, settling at Rs 19.68 lakh crore. A closer look at this figure reveals a 16.91% growth in gross corporate tax collection, amounting to over Rs 10.04 lakh crore. On the personal Income Tax front, there was a 24.23% surge, which took the figure to over Rs 9.60 lakh crore.
In Conclusion
The current financial year’s tax collection statistics reiterate the Centre’s commitment to improving India’s fiscal health. With several months still left in the fiscal year, it will be interesting to see how these numbers evolve.