Direct tax collection may top the revised estimate (RE) for Fiscal Year 2022-23 (FY23) as net collection till March 10 has already crossed 83 per cent of the revised estimate (RE).
Direct Taxes mainly comprise of Personal Income Tax (PIT) and Corporate Income Tax (CIT). The budget estimate (BE) for FY23 was ₹14.20 lakh crore which was revised to ₹16.50 lakh crore.
Data released by the Income Tax Department on Saturday showed net collection (after deducting a refund from gross collection) rose to ₹13.73 lakh crore between April 1, 2022, and March 10, 2023. This is 16.78 per cent higher than ₹11.76 lakh crore collected. during the corresponding period of Fiscal Year 2021-22 (FY22). This is 96.72 per cent of the BE and 83.19 per cent of the revised estimate.
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Though the statement has not given reasons for better collection, officials say three factors – economic recovery, rise in income and profit and better compliance were contributors. Now Income Tax Department is hoping for better-than-expected collection from the fourth installation of advance tax and the entire due of presumptive taxation, due on March 15.
For salaried, freelancers and businesses if their total tax liability is ₹10,000 or more in a financial year then he has to pay advance tax in four installations (by June 15: 15 per cent, by Sept: 45 per cent, by December 15: 75 per cent and by March 15: 100 per cent of tax dues). Individuals over the age of 60 years are not required to pay advance tax. Businesses or individuals, opting for the presumptive option, can pay the entire amount of income tax in one installation by March 15.
Meanwhile, the statement said that between April 1 and March 10, gross collections surged to ₹16.68 lakh crore which is 22.58 per cent higher than the gross collections of ₹13.60 lakh crore for the corresponding period of last year.
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As far as the growth rate for CIT and PIT in terms of gross revenue collections is concerned, CIT growth rate is 18.08 per cent while that for PIT (including STT) is 27.57 per cent. After adjustment of refunds, the net growth in CIT collections is 13.62 per cent and that in PIT collection us 20.06 per cent.
The statement mentioned that refunds amounting to ₹2.95 lakh crore have been issued between April 01, 2022 and March 10, 2023. which are 59.44 per cent higher than refunds issued during the same period in the preceding year.