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India's Direct Tax Collection 61.79% Of FY23 Budgeted Estimates

The budgetary target for this year is Rs 14 lakh crore—a conservative figure, according to analysts.

India's Direct Tax Collection 61.79% Of FY23 Budgeted Estimates

India's direct tax collection shows that its tax revenue continues to grow in a healthy way due to encouraging compliance.

The country's direct tax collection (net of refunds) stood at Rs 8.77 lakh crore as of Nov. 30, or 61.79% of the budgetary estimates for the current fiscal.

The budgetary target for this year is Rs 14 lakh crore—a conservative figure, according to analysts. Of this, corporate income tax and personal income tax are expected at Rs 7.2 lakh crore and Rs 7 lakh crore, respectively.

The Ministry of Finance tweeted on Monday that the net collections for FY 2022–23 are 24.26% higher than the net collections for the same time last year.

The pace of refunds issued has also seen an uptick, the ministry said. Between April 1 and Nov. 30, refunds totaling Rs 2.15 lakh crore were issued. The Ministry noted that 66.92% more refunds were issued up to November this year, compared to the corresponding period in 2021.

Tweeting the highlights of the year, the ministry credited pre-filled forms with encouraging compliance.

"Pre-filled data from various statutory forms and past records made the filing of ITRs more user-friendly and smoother. A substantial portion of data is pre-filled, making compliance easier," the ministry tweeted.

For AY 2022–2023, 46.9% of the overall returns were filed through the online utility with pre-fill data, it said.

Almost 10% of the direct tax collections have been collected since Oct. 8 when the CBDT last posted its collections of Rs 7.45 lakh (52.46% of target).