New Delhi: The union government’s direct-tax collection has grown by 15.41%, after tax refunds, to ₹12.1 trillion so far this financial year, the Central Board of Direct Taxes (CBDT) said on Monday.
The tax department issued ₹2.91 trillion in refunds during the period, a 53% increase from the same period a year ago. Gross direct tax collection before adjusting for refunds grew 21.2% to ₹15 trillion in the 1 April to 11 November period.
Corporate tax collection after adjusting for refunds stood at ₹5.1 trillion over this period, up from ₹4.79 trillion in the same period a year ago.
The government received non-corporate tax revenue, comprising mainly personal income tax, of ₹6.61 trillion during the period, after adjusting for refunds. In the same period last year the government collected ₹5.48 trillion in non-corporate tax.
Securities transaction tax contributed ₹35,923 crore so far this financial year, 90% more than the ₹18,909 crore collected in the same period a year ago, CBDT data showed.
So far, the tax department has collected 55% of its ₹22 trillion direct-tax collection target for the full financial year. The 15.41% growth in net-direct-tax revenue collected so far this year is faster than the 12.8% growth rate assumed in the full-year budget presented in July. This gives comfort to policymakers on achieving the full-year target.
The government’s direct-tax revenue receipts have seen strong growth in recent years thanks to a growing tax base. Extensive data collection, wide use of taxes deducted or collected at source, pre-filling of tax return forms, restrictions on use of cash and promotion of digital payments have helped the government increase direct-tax collection.
Sandeep Sehgal, partner, tax, at AKM Global, a tax and consulting firm, told Mint in October, “A fair share of credit can be given to the government’s efforts in rationalising direct-tax provisions and in bringing tax certainty among the investor community. Key steps such as dispute resolution schemes and digitisation of tax compliance procedures have played a key role in boosting direct-tax collections. The cost of collection has also gone down, which is likely the result of use of technology and artificial intelligence tools by the tax department.”
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