Net Direct Tax Jumps 22% To Rs 10.6 Lakh Crore
Collections of corporate tax rose 12.48% and personal income tax grew 31.26%, says the CBDT.
Direct tax collections surged from April to Nov. 9 of the current fiscal by 22% as compared with the same period last year.
Net direct taxes rose to Rs 10.6 lakh crore, which is 58.15% of the budgetary estimates for the fiscal, the Central Board of Direct Taxes said in a release on Friday.
Personal income taxes continued to report stronger growth in the current fiscal, outstripping corporate taxes. Experts expect this could be an effect of global cues and a conservative approach where businesses are likely to wait for a real-time stock-taking towards the end of the year.
Provisional figures as on Nov. 9 are as follows:
Gross collections: Rs 12.37 lakh crore (17.59% increase YoY).
Net collections: Rs 10.6 lakh crore (21.82% increase YoY).
Refunds: Rs 1.77 lakh crore.
The Union budget estimated a collection of Rs 9.22 lakh crore in corporate income taxes and Rs 9 lakh crore in personal income taxes, totalling Rs 18.2 lakh crore.
The CBDT said that direct taxes continued to register steady growth, with net growth in corporate income tax collections at 12.48% and personal income tax collections and securities transaction tax at 31.26%.
According to Rohinton Sidhwa, partner at Deloitte India, though PIT collections are registering a 30% plus growth, CIT collections still need to pick up.
"A clearer picture should emerge once the filing season concludes at the end of November. The general expectation is that the recent Supreme Court wins that the department has had will also add to tax collections for the current year," he said.
Amit Singhania, a partner at Shardul Amarchand Mangaldas & Co. noted that the growth indicated by the direct tax collection numbers makes him expect the collections will surpass the budgetary estimates.
