Introduction: The Ministry of Finance has released provisional figures of Direct Tax collections for the fiscal year 2023-24. The data reveals a consistent and significant growth trend in the collections up to 9th July, 2023.
Analysis: According to the Ministry of Finance, the gross collections of Direct Taxes up to 9th July, 2023, amounted to Rs. 5.17 lakh crore. This figure represents a growth of 14.65% compared to the corresponding period of the previous year. Additionally, the net collections, after refunds, stood at Rs. 4.75 lakh crore, reflecting a growth of 15.87% in comparison to the same period last year.
The data further highlights that the net collections for the given period constitute 26.05% of the total Budget Estimates of Direct Taxes for the fiscal year 2023-24. This indicates a positive trend towards achieving the projected targets.
In terms of refunds, the Ministry issued Rs. 42,000 crore during the period from 1st April, 2023, to 9th July, 2023. This amount is 2.55% higher than the refunds issued during the corresponding period in the preceding year. The higher refund amount suggests a potential increase in tax compliance and timely processing of refund claims.
Conclusion: The provisional figures of Direct Tax collections for FY 2023-24, released by the Ministry of Finance, showcase a commendable growth trend up to 9th July, 2023. The substantial increase in both gross and net collections compared to the previous year indicates a positive trajectory for tax revenue generation. Furthermore, the higher refund amount issued during the period demonstrates an efficient and timely refund system. These figures suggest a promising outlook for the fiscal year 2023-24 in terms of Direct Tax collections, contributing to the overall financial stability of the country.
Ministry of Finance
Provisional figures of Direct Tax collections for FY 2023-24 register steady growth upto 9th July 2023
The provisional figures of Direct Tax collections up to 9th July, 2023 continue to register steady growth. Direct Tax collections up to 9th July, 2023 show that gross collections are at Rs. 5.17 lakh crore which is 14.65% higher than the gross collections for the corresponding period of last year.
Direct Tax collection, net of refunds, stands at Rs. 4.75 lakh crore which is 15.87% higher than the net collections for the corresponding period of last year. This collection is 26.05% of the total Budget Estimates of Direct Taxes for F.Y. 2023-24.
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.
