Direct Tax collection in Oct FY24 crosses Rs 11.07 lakh cr

The ministry said that the gross direct tax collection for the current financial year has seen an 18 percent increase compared to the same period last year.

On a net basis, the direct tax collections have reached Rs 9.57 lakh crore, showing a YoY increase of 21.8 percent. Refunds totalling Rs 1.5 lakh crore have been issued so far.

Direct taxes include both corporate income tax and personal income tax. According to the budget unveiled on February 1, the government aims to gather Rs 9.23 lakh crore from corporate tax and Rs 9.01 lakh crore from personal income tax in the fiscal year 2023-24.

Consequently, the net direct tax collections for the period spanning from April 1 to October 9 amount to 52.5 percent of the projected full-year total of Rs 18.23 lakh crore.

"So far as the growth rate for Corporate Income Tax (CIT) and Personal Income Tax (PIT) in terms of gross revenue collections is concerned, the growth rate for CIT is 7.3 percent while that for PIT is 29.53 percent (PIT only)/ 29.08 percent (PIT including STT)," the finance ministry statement said.

After factoring in refunds, there is a 12.39 percent increase in net corporate tax collections, and a 32.51 percent rise in net personal income tax collections. When considering Securities Transaction Tax (STT), the growth in personal income tax collections is 31.85 percent.

The Ministry of Finance did not provide a detailed breakdown of corporate and personal income tax collections from April 1 to October 9.

Official data released for April to August by the Controller General of Accounts on September 29 revealed that corporate tax and income tax collections in the initial five months of the current year increased by 15 percent and 36 percent, respectively, compared to the corresponding period last year.

The surge in direct tax collections in August played a role in keeping the Centre's fiscal deficit in check for the first five months of 2023-24, amounting to 36 percent of the full-year target.

The Indian government aims for a fiscal deficit of 5.9 percent of GDP this year, with a goal of reducing it to below 4.5 percent by 2025-26.