Net direct tax collection jumps 23%; refunds up 83%

NEW DELHI:  The net direct tax collection (after refunds) for 2022-23 registered a 23% jump to R7 lakh crore as on 17 September 2022. Last year during the same period the net direct tax collection was R5.68 lakh crore.

Of the R7 lakh crore, corporate tax collected during the period was R3.7 lakh crore while personal income tax collected was R3.30 lakh crore. Meanwhile, Gross collection of Direct Taxes (before adjusting for refunds) for 2022-23 stands at R8.36 lakh crore compared to R6.42 lakh crore in the corresponding period in 2021-22, registering a growth of 30%.

The Gross collection of R 8,36,225 crore includes Corporation Tax at R4,36,020 crore and Personal Income Tax (PIT) including Securities Transaction Tax (STT) at R3,98,440 crore.

Of the total gross tax collection, advance taxes accounted for R2,95,308 crore. Tax Deducted at Source (TDS) collected during the period was R4,34,740 crore, self-assessment tax at R77,164 crore and regular assessment tax collected was R 20,080 crore.

The finance ministry in a statement said that direct tax collections continue to grow at a robust pace, which is a clear indicator of the revival of economic activity after the pandemic, as also the result of the stable policies of the government, focusing on simplification and streamlining of processes and plugging of tax leakage through effective use of technology.

The finance ministry also pointed out that there has been a remarkable increase in the speed of processing of income tax returns filed during the current fiscal, with almost 93% of the duly verified ITRs having been processed till 17 September 2022. 

It said that there has been a 468% increase in the number of refunds issued in the current financial year. Refunds amounting to R1,35,556 crore have been issued in 2022-23 till 17 September, as against refunds of R74,140 crore issued during the corresponding period last year.