Gross direct tax collections for the Financial Year (FY) 2023-24 in India amounted to Rs. 19.58 lakh crore, marking a notable increase from Rs. 16.64 lakh crore recorded in FY 2022-23, showcasing a growth rate of 17.70 per cent.
As per an announcement from the Union Ministry of Finance, the Budget Estimates (BE) for Direct Tax revenue in the Union Budget for FY 2023-24 were initially set at Rs. 18.23 lakh crore. However, the provisional Direct Tax collections (net of refunds) have surpassed these estimates, exceeding the BE by a margin of 7.40 per cent.
Moreover, they exceeded the Revised Estimates (RE) by Rs. 13,000 crore, with the RE set at Rs. 19.45 lakh crore. The Gross collection (provisional) of Direct Taxes (before adjusting for refunds) for FY 2023-24 is recorded at Rs. 23.37 lakh crore, demonstrating an increase of 18.48 per cent compared to the preceding fiscal year. A direct tax refers to a tax that individuals or entities pay directly to the governing body that imposes it. Examples include income tax.
Breaking down the data, the provisional Gross Corporate Tax collection for FY 2023-24 stood at Rs. 11.32 lakh crore, reflecting a growth of 13.06 per cent compared to the previous year. Similarly, the provisional Net Corporate Tax collection reached Rs. 9.11 lakh crore, marking a growth of 10.26 per cent.
In the domain of Personal Income Tax, the Gross collection (including STT) surged to Rs. 12.01 lakh crore in FY 2023-24, showcasing a remarkable growth of 24.26 per cent over the preceding year. The Net Personal Income Tax collection (including STT) reached Rs. 10.44 lakh crore, indicating a substantial growth of 25.23 per cent.
Furthermore, data released by the Ministry of Finance reveals that refunds totaling Rs. 3.79 lakh crore were issued in FY 2023-24, indicating a rise of 22.74 per cent compared to the refunds issued in FY 2022-23.