Net direct tax for Q1’24 up by 36%

June 18, 2023 admin Leave a reply Post Comment

Net direct tax collection for the first quarter of FY24 as on June 15 soared by 36 per cent to Rs 3.78 trillion, indicating better corporate performance and a sustained economic growth trend.

Advance tax payment for the first quarter (between April 1 and June 15) stood at Rs 1.16 trillion.

This includes corporation tax at Rs 92,173 crore and personal income tax at Rs 23,513 crore.

Besides advance tax, the major contributor to high tax collection has been tax deducted at source (TDS), which came to around Rs 2.69 trillion during the period.

Advance tax is paid by companies and individuals in four instalments through the year with the first one comprising 15 per cent of evaluated tax liabilities.

A tax instalment of 25 per cent each is slated for the next two quarters (September and December) and the remaining 35 per cent is to be paid in the fourth quarter (March).

Net collection (Rs 3.78 trillion) rose 35.32 per cent over the Rs. 2.80 trillion in the same period of FY23.

It accounted for 20.77 per cent of the Budget target of Rs 18.2 trillion projected for FY24.

This includes corporation tax about Rs 1.86 trillion and personal income tax at Rs. 2.25 trillion.

Gross collection, before adjusting for refunds, stood at around Rs 4.17 trillion.

Refunds amounting to Rs. 39,390 crores have been issued.

Other taxes that have shown good collection included securities transaction tax (tax on share buying and selling), which netted Rs. 4,731 crores.

Self assessment tax racked up Rs. 17,834 crore, regular assessment tax ? 9,911 crore, and dividend distribution tax Rs. 908 crores.

India recorded strong growth in direct tax collection in FY23.

Net collection (provisional) was Rs. 16.61 trillion, exceeding the budgetary estimate, registering a growth rate of 18 per cent YoY, according to ministry.