INDIA'S DIRECT TAX REVENUE SURGES 21.8 PER CENT

India's strong direct tax growth signals economic stability and efficient tax administration, while fiscal deficit figures offer insights into government fiscal management

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India’s direct tax collections for the current fiscal year (2023-24) have surged by 21.82% year-on-year, reaching 9.57 lakh crore by October 9, 2023, as reported by the Central Board of Direct Taxes (CBDT). This remarkable increase in tax revenue reflects a positive trend in the country’s financial landscape, as it accounts for 52.50% of the total budget estimates for direct taxes in FY24.

The provisional data further indicates that the gross direct tax collections have reached 11.07 lakh crore, representing a substantial 17.95% increase compared to the corresponding period in the previous year.

The growth rate for corporate income tax (CIT) recorded a 7.30% rise, while personal income tax (PIT) exhibited a significant increase of 29.53% in terms of gross revenue collections, according to the Revenue Department of the Finance Ministry.

After adjusting for refunds, the net growth in CIT collections stands at 12.39%, and for PIT collections, it is 32.51% (PIT only) or 31.85% (PIT including Securities Transaction Tax, STT).