Centre’s direct tax receipts at ₹3.39L cr by mid-june

The central government has collected ₹3.39 lakh crore in net direct taxes so far in FY23, the Central Board of Direct Taxes (CBDT) said on Friday.

Net direct tax collection till June 16 was up 45% compared to the ₹2.33 lakh crore in the year ago, and by 171% compared to the ₹1.25 lakh crore in 2020-21, the CBDT said in a statement.

This year’s tax revenue growth is on a low base of last year when the second wave of the pandemic was severe. According to the CBDT, tax collections were nearly double the receipts made in the corresponding period of FY20 when the government’s net direct tax collection stood at ₹1.67 lakh crore.

The tax collections include ₹1.7 lakh crore in corporation tax and ₹1.68 lakh crore in personal income tax, including security transaction tax (STT).

Tax revenue before adjusting refunds was at ₹3.69 lakh crore so far this fiscal year, compared to ₹2.64 lakh crore in the corresponding period of last year, up by almost 40%. Gross corporate tax collection in FY23 stood at ₹1.9 lakh crore and personal income tax, including STT, was at ₹1.78 lakh crore.

Of the ₹3.69 lakh crore gross direct tax receipts, tax deducted at source accounted for about ₹2.3 lakh crore, followed by advance taxes of over ₹1 lakh crore and self-assessment tax of ₹21,849 crore.

Advance tax collection for the first quarter of FY23 stood at ₹1 lakh crore, growing 33% from the year ago. Bulk of the advance tax comes was in the form of corporation tax.

Refund of ₹30,334 crore has been issued so far in FY23.

The due date for first advance tax instalment is June 15. Advance tax is applicable for assessees, including salaried employees, whose tax liability for the fiscal after accounting for taxes deducted or collected at sources, is ₹10,000 or more. Resident senior citizens not having income from business or profession are not liable to pay advance tax. Tax department had earlier cautioned that delay in payment or short-payment of advance tax will lead to interest liability.

Advance tax is paid on the basis of business’ estimate of their income for the whole fiscal.