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- Recently, the Finance Ministry released provisional data regarding FY 2022-23 Tax collections.
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- India’s net direct tax collections have risen 17.63% in 2022-23 to touch ?16.61 lakh crore, exceeding the revised estimates target for the year by 0.7%.
- Corporate tax contribution to gross direct tax was ?10.04 lakh crore, just a tad higher than the ?9.61 lakh crore paid by taxpayers as personal Income Tax and Securities Transaction Tax (STT).
- At a gross level, the share of personal income tax and STT to the tax kitty has touched 48.9% in 2022-23 compared to around 47.4% in 2021-22, while corporate tax accounted for just 51.1% in the year gone by as opposed to 52.6% in 2021-22.
- The growth in corporate tax collections was also lower than personal income tax. The gross corporate tax collection had risen 16.9% in the year, while personal income tax and STT yielded a growth of 24.23%.
- Gross tax collections grew 20.33% to ?19.68 lakh crore in 2022-23, compared to ?16.36 lakh crore in the previous financial year. Tax refunds jumped at a sharper 37.4% year-on-year to a little over ?3.07 lakh crore from ?2,23,658 crore in 2021-22.
- Gross corporate and personal tax collections along with STT, have registered 20.38% growth from ?16.32 lakh crore to ?19.65 lakh crore.
Reasons for gains :
- Incorporation of Data accumulation tools by the tax department lead to taxpayer data being pulled and automatically adjusted
- expansion of tax deduction and tax collection at source [TDS and TCS] provisions to track transactions from the source through the value chain
- Increase in Tax base through implementation of GST.
Explanation for the terms:
- Revised Estimates: Budget estimates are prepared for a year,before the completion of a year A survey is conducted of the allocations of the financial year which takes stock of how much of the allocated funds have been used, how much is left/ collected,what all activities have been planned and so on. After this, the initial budget estimates are revised and these numbers are now called revised estimates.
- Gross Direct tax : Direct taxes are those where the burden can’t be shifted by the taxpayer to someone else. After Tax collections the tax authority may offer refunds for various reasons like wrong application,mistimed deductions,Appeals etc. net collections are gross collections minus refunds.
Source:TH
