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The direct tax kit gains strength, with an increase of 20.25% as of February 10

Personal Income Tax revenue growth continued to outpace Corporate Tax revenue growth. Representational | Photo credit: C. Venkatachalapathy

India’s net direct tax collection accelerated over the past month to rise 20.25% year-on-year on February 10, compared to a 19.4% rise on the same date in January, according to data released by the Ministry of Finance on Sunday.

The growth in income from the Personal Income Tax (IRPF) continued to exceed the Corporate Income Tax (IRS), with a rebound of 26.91% in the net collection of Personal Income Tax compared to an increase of 13.6% in income tax receipts so far this year.

From ₹14.7 lakh crore on January 10, net direct tax collection, which is calculated by deducting refunds from gross tax receipts, had reached ₹15.6 lakh crore on Saturday, constituting 80.23 % of revised direct tax estimates for this year.

Higher direct tax expectations

Finance Minister Nirmala Sitharaman, in her interim budget for 2024-25, had raised hopes for the direct tax fund this year, pegging revised estimates at ₹19.5 lakh crore, from ₹18.23 lakh crore originally estimated for 2023-24.

“We are very hopeful of meeting the revised estimates for the current year as the requested rate is 17% growth for the next two months. But we do not know how the Advance Tax will be finalized, so let’s see how much we can achieve because it is a product of the collections that will be made in the month of February and March and the refunds that will be made. ”said Central Board of Direct Taxes chairman Nitin Gupta. The Hindu in an interview last week.

“The provisional figures for direct tax collection continue to record sustained growth. “The direct tax collection till February 10, 2024 shows the gross collection standing at ₹18.38 lakh crore, 17.30 per cent more than the gross collection of the corresponding period last year,” the Ministry said in a statement. .

Refunds on the rise

“Refunds worth ₹2.77 lakh crore were issued (between) April 1, 2023 (and) February 10, 2024,” it added.

“We are issuing refunds and intend to continue issuing them as they arise. So let’s see; Every year, we see reimbursements increase. Last year, it was ₹2.25 lakh crore and last year it increased to ₹3.07 lakh crore,” Gupta said, adding that the Board was also trying to process and give quick effect to appeal orders on suits. taxes, which are likely to be recovered in the remaining period of this financial year.

Before the refunds, gross corporate income tax collections were 9.2% higher than a year ago, while personal income tax revenues increased 25.7%. The growth in personal income tax collection, combined with the Securities Transaction Tax (ITS), stood at 25.93% at the gross level, while it was 27.2% after making refund adjustments.

As of January 10, the net growth in IS collection was 12.37%, while personal income tax income, excluding TTE income, increased by 27.26%.

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