Direct tax collections surge 35% but fall short of estimates

Gross direct tax collections stood at Rs 6.48 lakh crore till September 8, which is 35.46 per cent higher than the gross collections for the corresponding period of last year.

In the year-ago period, direct tax collections stood at Rs 5.29 lakh crore, which was 30.17 per cent higher than the net collections for the corresponding period of the previous year.

The present collections are 37.24 per cent of the total budget estimates for 2022-23, an official statement by the Finance Ministry said.

Refunds amounting to Rs 1.19 lakh crore have also been issued between April 1, 2022 and September 8, 2022, which is 65.29 per cent higher than the refunds issued during the same period of last year.

"As the economy continues to recover from the Covid downturn, the efforts at nudging tax-payers to better compliance through a combination of technology intervention and data reporting are paying off, and tax collections continue on their upward trajectory. It's expected that a clearer picture will be available by the calendar year-end as filings come in for corporate tax returns," said Rohinton Sidhwa, Partner, Deloitte India.

"The increase in direct taxe collections is encouraging and indicative of the robust economic growth. The growth rate of corporate income tax indicates buoyancy in the profitability of India Inc," said Amit Singhania, Partner, Shardul Amarchand Mangaldas & Co.