New Delhi, India – India's net direct tax collections registered a significant increase, reaching ₹8.11 lakh crore as of September 17, 2023, according to data released by the Central Board of Direct Taxes (CBDT). This figure represents a 21.8% year-on-year growth compared to the collections in the corresponding period of the previous fiscal year. The growth has been largely driven by non-corporate income taxes, indicating robust performance in individual tax contributions.

The gross collection of direct taxes, before accounting for refunds, stood at ₹9.48 lakh crore by the same date, reflecting an 18.2% increase from the previous year. During this period, the CBDT processed refunds totaling ₹1.37 lakh crore. After adjusting for these refunds, the net collection amounted to ₹8.11 lakh crore.

Analysis of the collection data indicates that non-corporate taxes, primarily Personal Income Tax (PIT), contributed substantially to this growth. Gross collections from Corporate Income Tax (CIT) recorded an 11.23% increase year-on-year. In comparison, gross collections from Personal Income Tax (including Securities Transaction Tax) demonstrated a more substantial rise of 32.73% over the same period. This differential growth highlights the expanding tax base and improved compliance among individual taxpayers.

Post-refund adjustments, the net growth in Corporate Income Tax collections stood at 19.85%, while net Personal Income Tax collections showed a 22.95% increase. The consistent performance across both categories, with a particular acceleration in personal income tax, has contributed to the overall positive trend in direct tax revenue.

The total net direct tax collection of ₹8.11 lakh crore achieved by mid-September represents 44.5% of the annual direct tax budget estimate for the fiscal year 2023-24, which is set at ₹18.23 lakh crore. This progress places the government in a position to monitor its revenue targets for the current fiscal year.

Key figures up to September 17, 2023:

  • Gross Direct Tax Collections: ₹9.48 lakh crore
  • Refunds Issued: ₹1.37 lakh crore
  • Net Direct Tax Collections: ₹8.11 lakh crore
  • Net Growth (Year-on-Year): 21.8%
  • Gross CIT Growth (Year-on-Year): 11.23%
  • Gross PIT + STT Growth (Year-on-Year): 32.73%
  • Percentage of FY24 Budget Estimate Achieved: 44.5%

The sustained increase in direct tax collections provides essential revenue for government expenditure and fiscal planning. The CBDT continues to implement measures aimed at tax base expansion and administrative efficiency to support these collection efforts throughout the remainder of the fiscal year.