TC Web Desk
The recovery of the Indian economy from the shocks of the Covid-19 pandemic is reflected by the 23% increase in direct tax collections. Direct tax is referred to taxes paid by individuals on their income and by corporates on their earning.
According to the latest figures released by finance ministry, direct tax collections for the FY 2022-23, as on September 17 show a net collection of ₹7,00,669 crore, compared to ₹5,68,147 crore in the corresponding period of the preceding financial year, representing an increase of 23%. The net direct tax collection of ₹7,00,669 crore (net of refund) includes Corporation Tax (CIT) at ₹3,68,484 crore and Personal Income Tax (PIT), including Securities Transaction Tax (STT) at ₹3,30,490 crore.
The gross collection of direct taxes (before adjusting for refunds) for the FY 2022-23 stands at ₹8,36,225 crore compared to ₹ 6,42,287 crore in the corresponding period of the preceding Financial Year, registering a growth of 30% over the previous year.
The gross collection of ₹8,36,225 crore includes Corporation Tax (CIT) at ₹4,36,020 crore and Personal Income Tax (PIT) including Securities Transaction Tax (STT) at ₹3,98,440 crore. Minor head-wise collection comprises advance tax of ₹2,95,308 crore; tax deducted at source of ₹4,34,740 crore; self-assessment tax of ₹77,164 crore; regular assessment Tax of ₹20,080 crore; and tax under other minor heads of ₹8,933 crore.
The cumulative advance tax collections for the first and second quarter of the FY 2022-23 stand at ₹2,95,308 crore as on September 17, against advance tax collections of ₹2,52,077 crore for the corresponding period of the immediately preceding financial year, showing a growth of 17%. The advance tax collection of ₹2,95,308 crore comprises Corporation Tax (CIT) at ₹2,29,132 crore and Personal Income Tax (PIT) at ₹66,176 crore.
Refunds amounting to ₹1,35,556 crore have been issued in the FY 2022-23 until September 17, as against refunds of ₹74,140 crore issued during the corresponding period in the preceding financial year. According to the official statement, 93% of duly verified ITRs having been processed until September 17.
