NEW DELHI: Direct tax collections have increased over 23% to Rs 6,45,239 crore during this financial year up to July 11, driven by a faster rise in personal income tax, the Central Board of Direct Taxes (CBDT) said on Saturday.
Net collections were 19.5% higher at over Rs 5.7 lakh crore as refunds soared almost 65% to Rs 70,902 crore during the period.On a gross basis, corporate tax collections were 20.4% higher at Rs 2,65,336 crore, while personal income, including securities transaction tax, rose 25.3% to a little under Rs 3.8 lakh crore.
“Corporate profits continue to surge significantly, and these are clearly reflected in the first quarter advance tax collections. A booming stock market has also contributed to higher STT [securities transaction tax] collections. Strong collections being the backdrop of the upcoming budget indicate the possibility of the govt reigning in the fiscal deficit,” said Rohinton Sidhwa, partner at Deloitte India.
So far this year, tax collections have remained on track, on both direct and indirect tax fronts, with a bumper dividend from Reserve Bank of India bolstering govt’s receipts. Finance minister Nirmala Sitharaman is expected to stick to her projections on the tax front given that the Indian economy is widely projected to grow over 7% during the current financial year
A higher than budgeted collections will come handy for the Centre which is under pressure to increase spending in crucial areas such as agriculture, health and education as well as maintain the capex for infrastructure sectors.