Direct tax receipts jump 19.1%

NEWDELHI: The government’s net receipts from corporate and personal income tax rose 19.1% in the April-July period to ₹1.9 trillion, faster than the growth rate estimated in February for the entire financial year, the Central Board of Direct Taxes (CBDT) said on Wednesday.

One factor that helped in boosting the growth rate beyond the 15.7% growth rate for the full financial year that the government estimated at the beginning of this financial year is the comparatively less tax refunds made in the April-July period of this year from a year ago. The tax department issued refund of ₹61,920 crore so far this fiscal, which is 5.1% less than what was issued in the same period a year ago, said a statement from CBDT.

Direct taxes received so far represent about a fifth of the ₹8.4 trillion the government estimates to collect in the full financial year. Gross corporate tax collection in the period under review grew 7.2% while gross personal income tax receipts including securities transaction tax grew 17.5%. However, after adjusting for refunds, the net growth in corporate tax receipts is 23.2% and the same for personal income tax is 15.7%, the statement said.

Direct tax revenue for the government is likely to be robust by the end of the current fiscal considering that the tax base is showing signs of widening.

The tax department said on Tuesday that more than 28.2 million income tax payers filed their ITRs for 2016-17 before the extended deadline of 5 August, a 24.7% rise over the previous year.