Direct tax receipts grow 35% to ₹6.48 tn

Gross direct tax collections comprising corporate tax and personal income tax has surged by over 35% to ₹6.48 trillion so far this fiscal compared with the year- ago period, the Central Board of Direct Taxes (CBDT) said on Friday.

The tax authority said figures for provisional direct tax collection continue to register steady growth. The latest figures for this fiscal pertain to the period up to 8 September.

Post refunds, direct tax receipts stood at ₹ 5.29 trillion, 30.17% more than a year earlier. This comprises 37.24% of the total budget estimates of direct tax receipts for this fiscal.

Tax refunds totalling ₹1.19 trillion have been issued so far this fiscal. This is 65.29% higher than year-ago period. While corporate tax collections grew 25.95%, personal income tax collections [including securities transaction tax (STT)] grew 44.37% so far this year compared with a year ago. After adjustment of refunds, the net growth in corporate tax collections is 32.73% and that in personal income tax collections (including STT) is 28.32%.

According to Amit Singhania, partner at Shardul Amarchand Mangaldas & Co., the increase in direct tax collections is encouraging and is indicative of robust economic growth. The growth rate of corporate income tax indicates buoyancy in the profitability of businesses, said Singhania.

The tax department has been taking a host of measures, including widening the scope of data collection, to widen and deepen the tax base.