CBDT Reports 22% Surge In Direct Tax Collections

New Delhi, Aug 13 (KNN) The Central Board of Direct Taxes (CBDT) has released data indicating a significant rise in direct tax collection for the current fiscal year.

As of August 11, the net direct tax collection, after adjusting for refunds, reached Rs 6.92 trillion, marking a 22.48 per cent increase from the Rs 5.65 trillion collected during the same period last year.

Personal income tax collections have shown remarkable growth, surging by 30 per cent year-on-year to Rs 4.47 trillion. Corporate taxes, while growing at a more modest rate of 6 per cent, still contributed Rs 2.22 trillion to the total.

A noteworthy development is the performance of the Securities Transaction Tax, which has more than doubled compared to the previous year, amounting to Rs 21,599 crore.

The government has set ambitious targets for the fiscal year 2025, aiming to collect Rs 10.2 trillion in corporate taxes and Rs 11.87 trillion in personal income taxes.

Before adjusting for refunds, the total direct tax collection stood at Rs 8.13 trillion, a 22.19 per cent increase from the previous year's Rs 6.55 trillion. This figure comprises Rs 3.08 trillion in corporate taxes and Rs 4.81 trillion in personal income tax receipts.

The trend of personal tax collections outpacing corporate tax growth has continued for the second consecutive year.

Analysts attribute this to rising incomes, changes in dividend taxation policy, and improved compliance through technological advancements.

Other taxes, including equalisation levy, fringe benefit tax, and various legacy taxes, have also seen an uptick, rising to Rs 1,617 crore from Rs 1,383 crore in the previous fiscal year.

During the recent budget presentation, Finance Minister Nirmala Sitharaman emphasised the government's commitment to simplifying the tax structure, enhancing taxpayer services, and reducing litigation while ensuring adequate revenue for development and welfare schemes.

The finance minister also noted the increasing adoption of simplified tax regimes, with 58 per cent of corporate tax revenue in FY 2022-23 coming from the new regime, and over two-thirds of personal income taxpayers opting for the new structure in the last fiscal year.

As the fiscal year progresses, the government's tax collection efforts and their impact on overall economic growth will continue to be closely monitored by economists and policymakers alike.

(KNN Bureau)