India’s Direct Tax Collection Records Steady Growth in FY2023

January 13, 2023

According to government data, the country’s gross direct tax collection of the current fiscal year (FY2023) till January 10 went up 24.58% to Rs 14.71 lakh crore, against the gross collections made in the corresponding period the previous fiscal. The finance ministry stated that the provisional figures of direct tax collections continue to register steady growth.

Net Direct Tax Collection

After adjusting refunds, net direct tax collection was at Rs 12.31 lakh crore, which is 19% higher than the previous year’s collection during the corresponding period. The Centre’s direct tax collections, net of refunds, reached 86.7% of the 2022-23 budget target by January 10, the finance ministry said on January 11.

Corporate and Personal Income Tax

Between April 1, 2022 and January 10, 2023, the government’s gross direct tax collections stood at Rs 14.71 lakh crore, the ministry said in a statement. The Centre had estimated it would collect Rs 14.2 lakh crore as direct taxes in 2022-23—Rs 7.2 lakh crore in corporate tax and Rs 7 lakh crore in personal income tax. After adjustment of refunds, the net growth in CIT (corporate income tax) collections is 18.33% and that in PIT (personal income tax) collections is 21.64%, the finance ministry said.

GST Collection

The robust growth in direct tax collections is good news for the government as indirect tax collections are also on the rise. Data released on January 1 showed total Goods and Services Tax collected in December was Rs 1.5 lakh crore, up 2.5% month-on-month and 15.2% compared to December 2021. Monthly GST collections have averaged Rs 1.49 lakh crore, so far, in the financial year 2022-23, up 20.5% from the monthly average for 2021-22.

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