Direct tax collection jumps 24% in current financial year

The gross collection of direct taxes during April to October 8 of the current financial year, has risen by 23.8 per cent to touch Rs 8.98 lakh crore compared to the same period last year.

According to an official statement released by the tax department, the gross collection of taxes on corporate earnings rose 16.74 per cent during April 1 to October 8, while personal income tax collection jumped 32.30 per cent.

Direct tax collection, net of refunds, stood at Rs 7.45 lakh crore – an increase of 16.3 per cent compared to the corresponding period last year. This collection is 52.46 per cent of the total budget estimates of direct taxes for the current financial year, the statement said.

A total refund of Rs 1.53 lakh crore have been issued during this period, which is 81 per cent higher than the refunds issued in the same period in the previous year.

The increase in direct tax collection is “a clear indicator of the revival of economic activity post pandemic, as also the result of the stable policies of the government” that has also focused on simplification and streamlining of processes and plugging of tax leakage through effective use of technology, the tax department earlier said.

Also read: GST collection jumps 27% to Rs 1.47 lakh crore in Sept