Growth within the Personal Income Tax revenues continued to outstrip Corporate Income Tax. Representational
| Photo Credit: C. Venkatachalapathy
India’s internet direct tax collections picked up tempo over the previous month to rise 20.25% year-on-year by February 10, in comparison with a 19.4% uptick on the identical date in January, as per information launched by the Finance Ministry on Sunday.
Growth within the Personal Income Tax (PIT) revenues continued to outstrip Corporate Income Tax (CIT), with a 26.91% uptick in internet PIT collections vis-à-vis a 13.6% rise in CIT inflows thus far this yr.
From ₹14.7 lakh crore on January 10, internet direct tax collections, which might be calculated by deducting refunds from gross tax inflows, had hit ₹15.6 lakh crore by Saturday, constituting 80.23% of the revised estimates for direct taxes for this yr.
Higher direct tax expectations
Finance Minister Nirmala Sitharaman, in her Interim Budget for 2024-25, had raised her hopes for the direct tax kitty for this yr, pegging revised estimates at ₹19.5 lakh crore, from the ₹18.23 lakh crore initially estimated for 2023-24.
“We are quite hopeful of meeting the Revised Estimates for the current year, as the asking rate is 17% growth for the next two months. But we don’t know how Advance Tax will come through, so let us see how much we are able to achieve because it is the product of the collections which will be made in the month of February and March and refunds which will be issued,” Central Board of Direct Taxes chairperson Nitin Gupta advised The Hindu in an interview final week.
“The provisional figures of direct tax collections continue to register steady growth. Direct tax collections up to February 10, 2024 show that gross collections are at ₹18.38 lakh crore, which is 17.30% higher than the gross collections for the corresponding period of last year,” the Ministry stated in an announcement.
Rising refunds
“Refunds amounting to ₹2.77 lakh crore have been issued [between] April 1, 2023 [and] February 10, 2024,” it added.
“We are issuing refunds and intend to keep issuing refunds as they arise. So let us see; every year, we are seeing refunds rising. The year before last, it was ₹2.25 lakh crore and last year, it rose to ₹3.07 lakh crore,” Mr. Gupta stated, including that the Board was additionally making an attempt to course of and provides fast impact to appellate orders on tax calls for, that are prone to decide up within the remaining interval of this monetary yr.
Prior to refunds, gross income collections from company revenue tax had been 9.2% increased than a yr in the past, whereas revenues from private revenue tax had been up 25.7%. Growth in PIT collections, when mixed with the Securities Transaction Tax (STT) receipts, stood at 25.93% on the gross degree, whereas it was 27.2% after making refund changes.
As of January 10, the online development in CIT collections was 12.37%, whereas PIT revenues, excluding STT receipts, had been up 27.26%.
