The Union government has collected Rs 3.8 lakh crore in the form of direct taxes in the first two-and-a-half months of 2023-24, the finance ministry said on June 18.
As per the ministry, as on June 17, the direct tax collected was 11.2 percent higher compared to the same period last financial year. This comprised of corporate tax mop-up of Rs 1.57 lakh crore and personal income tax - including Securities Transaction Tax - of Rs 2.22 lakh crore.
The overall rate of growth is faster than what the government had anticipated. In the Union Budget for 2023-24, presented by Finance Minister Nirmala Sitharaman on February 1, direct tax collections were seen rising 10.5 percent from 2022-23.
The Budget estimated the corporate tax mop-up would rise 10.5 percent to Rs 9.23 lakh crore, while personal income tax collections would increase similarly to Rs 9.01 lakh crore.
Without adjusting for refunds, direct tax collected until June 17 amounted to Rs 4.19 lakh crore, 12.7 percent higher on an year-on-year basis.
So far in 2023-24, refunds amounting to Rs 39,578 crore have been issued, up from Rs 30,414 crore in the same period last year, resulting in a growth of 30.1 percent.
The latest tax collection data comes after the filing of advance taxes for the first quarter of the new financial year. As per the data released by the finance ministry, total advance tax collected as on June 17 stood at Rs 1.17 lakh crore - up 13.7 percent year-on-year.
The growth in indirect tax collections follows that of indirect taxes, which hit an all-time high of Rs 1.87 lakh crore in April before easing to Rs 1.57 lakh crore in May.
The impressive growth in tax collections allowed the finance ministry to bring forward its 'double instalment' of tax devolution to states to June 12, when it released Rs 1.18 lakh crore to states - twice the amount it had transferred in April and May.
The Centre releases tax devolution to states in 14 equal instalments every year. As such, this involves two months where the instalment is double the usual monthly amount. However, these double-instalment months normally come at the end of the financial year after the Centre has greater clarity on its finances. But with New Delhi's finances in a good position, the last couple of years have seen these additional instalments being brought forward.