Active Stocks
Thu May 30 2024 15:54:55
  1. Tata Steel share price
  2. 164.20 -5.74%
  1. NTPC share price
  2. 360.00 -1.26%
  1. Tata Motors share price
  2. 924.15 -2.07%
  1. State Bank Of India share price
  2. 826.05 0.38%
  1. Wipro share price
  2. 436.95 -3.09%
Business News/ Economy / India’s direct tax collections surge 17.7% in FY24 to 19.58 tn
BackBack

India’s direct tax collections surge 17.7% in FY24 to ₹19.58 tn

One highlight of the mop-up is the growth in personal income tax collection. After adjusting for refunds, personal income tax receipt stood at ₹10.44 trillion in FY24.

Provisional figures show direct tax buoyancy of 1.9 indicating faster direct tax collection growth over the rate of economic expansion. Premium
Provisional figures show direct tax buoyancy of 1.9 indicating faster direct tax collection growth over the rate of economic expansion.

The Central government has collected 19.58 trillion in direct tax revenue in FY24 after adjusting for refunds, showing a 17.7% growth annually, the Central Board of Direct Taxes (CBDT) said on Sunday.

For the year ended March, the government had originally estimated net direct tax revenue of   18.23 trillion, but revised it up to 19.45 trillion in the FY25 interim budget presented on 1 February, by scaling up estimate of personal income tax receipts by more than 1.2 trillion. The Centre’s direct tax revenue receipt after refunds has crossed even the revised estimate by 13,000 crore.

Also read | Income tax strategies for real estate investors: Maximising deductions and minimising liabilities

One highlight of the mop-up is the growth in personal income tax collection. After adjusting for refunds, personal income tax receipt stood at 10.44 trillion in FY24, showing an annual growth of 25.23%, the CBDT said. Tax collection from corporations expanded over 10% annually in the just-concluded financial year to 9.11 trillion. 

Provisional figures show direct tax buoyancy of 1.9 indicating faster direct tax collection growth over the rate of economic expansion. As per statistics ministry’s estimates, the economy is likely to have grown by 9.1% in FY24 in nominal terms.

Also read | Income tax slabs FY 2024-25: Experts share these 8 benefits for taxpayers in new income tax regime

Direct taxes are increasingly accounting for a larger share of the Centre’s overall tax receipts. In FY25, it is expected to be 57.4% compared to 54.4% projected in the FY24 budget.

Also read | Income tax benefits on second home loan — Explained

For FY25, the government has assumed only a 13% growth for both corporate and personal income tax collection, in the interim budget. It remains to be seen whether the finance ministry will scale up this target when it presents the full year budget in July, given the 17.7% growth, with personal income tax revenue receipt staging a stellar performance. 

For FY25, the government has assumed a 10.5% economic growth in nominal terms. The CBDT said that it has issued tax refund of 3.79 trillion in the year ended March, showing an increase of 22.7% over the refund of 3.09 trillion issued in FY23.

Gross direct tax collection before adjusting for refunds stood at 23.37 trillion in FY24, registering a growth of 18.48% with corporate tax revenue expanding by over 13% and personal income tax collection including STT expanding by 24.26%. The just-concluded financial year also witnessed strong Goods and Services Tax (GST) collection. 

The finance ministry had on 1 April said GST revenue receipt of Centre and states in FY24 was “strong" and “consistent." In FY24, Centre and states reported gross GST collection of 20.18 trillion for the first time, showing an 11.7% increase compared to the collections in FY23.

 

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 21 Apr 2024, 01:25 PM IST
Next Story footLogo
Recommended For You