Direct tax revenues up 16.3% at ₹7.45 lakh crore

Personal income tax receipts grow faster than corporate taxes

India’s net Direct tax collections in 2022-23 have risen to ₹7.45 lakh crore, more than half this year’s Budget targets by October 8, rising 16.3% over the tax inflows during the same period a year ago, the Finance Ministry said on October 9, 2022. 

Based on provisional data, net personal income tax collections grew 17.35%, rising faster than corporate income tax collections that were up 16.29% net of refunds. Securities Transaction Tax (STT) collections combined with personal income tax receipts, grew at a more moderate 16.25%. 

Underlining that Direct Tax collections continue to register steady growth, the ministry said that tax refunds have jumped 81% over the preceding year to touch ₹1.53 lakh crore.   

Gross direct tax collections had reached ₹8.98 lakh crore by Saturday, 23.8% more than the corresponding period of 2021-22. After adjusting for refunds, net direct tax revenues now constitute 52.46% of the total Budget Estimates for 2022-23, the ministry said. 

Net direct tax collections had crossed ₹7 lakh crore by September 17 and were 23.3% higher at the time, so there appears to have been a moderation in tax inflows in the intervening three weeks. 

Gross revenues from direct taxes were at ₹8,36,225 crore on September 17, reflecting a 30.2% growth. Corporate tax revenues constituted little over half of the total net tax kitty at that point, as per an earlier statement from the Finance Ministry. 

Sunday’s statement from the ministry about direct tax collections did not share absolute numbers on corporate and personal income taxes received so far.  No details were released about advance tax collections either, which had risen 17% by September 17 to hit ₹2,95,308 crore.