Direct Taxes Reach 58% Of Budget Target
Economists say direct taxes need to rise only 0.3% on a year-on-year basis to meet the budget estimate from this point.
The Union government's collection of direct taxes till November has achieved 58.34% of the budget target of Rs 18.23 lakh crore for the current financial year.
Net tax collections of Rs. 10.64 lakh crore are 23.4% higher than the corresponding period of last year, the Ministry of Finance posted on X on Thursday. The gross collections of Rs 12.67 lakh crore are 17.7% higher than the corresponding period of the preceding year.
This development comes as economists expect direct taxes to exceed budget estimates by Rs 80,000 to Rs 1.1 lakh crore and offset shortfalls in revenue receipts by indirect taxes and disinvestment receipts.
Economists say that direct taxes need rise only 0.3% on a year-on-year basis to meet the budget estimate from this point.
Out of this, corporate taxes will be required to maintain a growth of 6%, while income tax can even decline 8% and still meet the budget target, Madhavi Arora, lead economist at Emkay Global Financial Services Ltd, had told NDTV Profit earlier.
Refunds worth Rs 2.03 lakh crore were issued between during the period. This is from 7.76 crore income-tax returns filed for assessment year 2023–24 till November.
"Special initiative was taken in case of 35 lakh refund failed cases of all AYs and refund was issued to validated bank account," the ministry said.
