New Delhi, July 10 (Agency) Showing steady growth, India’s gross direct tax collection comprising primarily of personal income tax and corporation tax grew 14.65% year-on-year to Rs 5.17 lakh crore in the current financial year up to July 9, 2023. Direct tax collection, net of refunds, stood at Rs 4.75 lakh crore during this period registering 15.87% on-year growth. “This collection is 26.05% of the total Budget Estimates of Direct Taxes for F.Y. 2023-24,” said Finance Ministry in a statement on Monday. As per the media release, refunds amounting to Rs 42,000 crore have been issued during 1st April, 2023 to 9th July 2023, which are 2.55% higher than refunds issued during the same period in the preceding year.
Commenting on direct tax mop-up, Vivek Jalan, Partner, Tax Connect Advisory said that considering a inflation of 5% and GDP growth of 7%, there is still a revenue buoyancy of around 3%. “The increase in direct tax collections is even more than the indirect tax collections which also show that the same is also on account of non-GST registered entities and also reflect on the buoyancy of non-corporate earnings,” he said.