Net direct tax collection sees growth of 16.45% to Rs 15.82 lakh crore till Dec 17

Net direct tax collection saw a significant increase of 16.45% year-on-year, reaching a total of over Rs 15.82 lakh crore by December 17 of the current fiscal year, as per the recent government data. The growth was largely driven by a higher advance tax collection, which rose by 21% to Rs 7.56 lakh crore during the same period.

The taxes encompassed within this category comprise corporate tax, non-corporate tax, securities transaction tax, as well as various other levies such as fringe benefit tax, wealth tax, banking cash transaction tax, hotel receipt tax, interest tax, expenditure tax, estate duty, and gift tax. 

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Furthermore, refunds totaling Rs 3.39 lakh crore were issued during this period, indicating a substantial year-on-year growth of 42.49%.

In segments, corporate tax (CT) collections displayed a consistent performance, with gross collections rising to Rs 9.24 lakh crore from Rs 7.90 lakh crore the previous year. After accounting for refunds, net corporate tax collections amounted to Rs 7.42 lakh crore, up from Rs 6.83 lakh crore in the same period in the previous fiscal year.

On the other hand, non-corporate tax (NCT) collections, which mainly consist of personal income tax, demonstrated strong growth. Gross collections increased to Rs 9.53 lakh crore, compared to Rs 7.81 lakh crore in the previous year. Net collections for this category also registered significant growth, reaching Rs 7.97 lakh crore from Rs 6.50 lakh crore.

Income tax returns in FY24

According to Minister of State for Finance Pankaj Chaudhary, the percentage of India's population filing income tax returns in the 2023-24 fiscal year was only 6.68%. However, there has been an increase in the number of returns filed, with over 8.09 crore filed in 2023-24, up from over 7.40 crore in 2022-23. In the previous years, the number of returns filed was over 6.96 crore in FY22, over 6.72 crore in FY21, and over 6.48 crore in FY20. "In FY 2023-24, the percentage of the population that files Income Tax Return is 6.68 per cent. (In FY 2023-24, the total number of persons filling income tax returns is 8,09,03,315)," Chaudhary said.

He further said that the total number of individuals reporting zero taxable income in their ITR is 4.90 crore in assessment year 2023-24, up from 4.64 lakh in 2022-23.