Sign of Indian economic revival: In FY 23, gross direct tax collections increased by 30% to Rs 8.36 lakh

Indian Currency

According to information released on Sunday by the Ministry of Finance, the gross direct tax receipts of the federal government increased 30% to Rs. 8,36,225 crore in the fiscal year 2022–23. 

In addition, the net collection increased by 23% to Rs 7,00,669 crore from Rs 5,68,147 crore in FY 2021–22. These numbers are valid till September 17, 2022.

The government cited the data to claim that the increase in collections was a definite sign that the economy had recovered from the pandemic.

Corporation Tax (CIT) at Rs 3,68,484 crore and Personal Income Tax (PIT) including Securities Transaction Tax (STT) at Rs 3,30,490 crore are included in the net direct tax collection of Rs 7,00,669 crore (net of refund).

The gross collection for the FY 2022–23 is Rs 8,36,225 crore (before accounting for refunds), up from Rs 6,42,287 crore the year before. The total revenue includes PIT with STT at Rs. 3,98,440 crore and CIT at Rs. 4,36,020 crore.

According to the ministry, the amount of tax collected on a per-minor head basis is as follows: advance tax of Rs 2,95,308 crore; tax deducted at source of Rs 4,34,740 crore; self-assessment tax of Rs 77,164 crore; regular assessment tax of Rs 20,080 crore; and tax under other minor heads of Rs 8,933 crore.

As of 17 September, the total advance tax revenues for the first and second quarters of the fiscal year 2022–23 were Rs 2,95,308 crore, up 17% from the advance tax collections of Rs 2,52,077 crore for the same period of the fiscal year 2021–22.

According to the ministry, the processing of income tax returns submitted during the current fiscal year has accelerated, with about 93% of the fully validated ITRs processed as of 17 September.

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