The Hindu (Mumbai)

Direct tax kitty picks up pace, up 20.25% by Feb. 10

Net direct tax collection­s increase from ₹14.7 lakh cr. on Jan. 10 to hit ₹15.6 lakh cr. by Saturday; the Finance Minister had pegged revised estimates for direct taxes for this year at ₹19.5 lakh cr.

- Vikas Dhoot

ndia’s net direct tax collection­s picked up pace over the past month to rise 20.25% yearonyear by February 10, compared to a 19.4% uptick on the same date in January, show data released by the Finance Ministry on Sunday.

Growth in the Personal Income Tax (PIT) revenues continued to outstrip Corporate Income Tax (CIT), with a 26.91% uptick in net PIT collection­s visàvis a 13.6% rise in CIT inflows so far this year.

From ₹14.7 lakh crore on January 10, net direct tax collection­s, that are calculated by deducting refunds from gross tax inflows, had hit ₹15.6 lakh crore by Saturday, making up 80.23%

Iof the revised estimates for direct taxes for this year.

Higher expectatio­ns

Finance Minister Nirmala Sitharaman, in her interim Budget for 202425, had raised her hopes for the direct tax kitty for this year, pegging revised estimates at ₹19.5 lakh crore, from the ₹18.23 lakh crore originally estimated for 202324.

“We are quite hopeful of meeting the Revised Estimates for the current year, as the asking rate is 17% growth for the next two months. But we don’t know how Advance Tax will come through, so let us see how much we are able to achieve because it is the product of the collection­s which will be made in the month of February and March and refunds which will be issued,” Central Board of Direct Taxes chairperso­n Nitin Gupta told The Hindu last week.

“The provisiona­l figures of direct tax collection­s continue to register steady growth. Direct tax collection­s up to February 10, 2024 show that gross collection­s are at ₹18.38 lakh crore, which is 17.30% higher than the gross collection­s for the correspond­ing period of last year,” the Ministry said in a statement.

“Refunds amounting to ₹2.77 lakh crore have been issued [between] April 1, 2023 [and] February 10, 2024,” it added.

“We are issuing refunds and intend to keep issuing refunds as they arise. So let us see; every year, we are seeing refunds rising. The year before last, it was ₹2.25 lakh crore and last year, it rose to ₹3.07 lakh crore,” Mr. Gupta said, adding that the Board was also trying to process and give quick effect to appellate orders on tax demands, which are likely to pick up in the remaining period of this financial year.

Prior to refunds, gross revenue collection­s from corporate income tax were 9.2% higher than a year ago, while revenues from personal income tax were up 25.7%. Growth in PIT collection­s, when combined with the Securities Transactio­n Tax (STT) receipts, stood at 25.93% at the gross level, while it was 27.2% after making refund adjustment­s.

As of January 10, the net growth in CIT collection­s was 12.37%, while PIT revenues, excluding STT receipts, were up 27.26%.

 ?? ??

Newspapers in English

Newspapers from India