Net Direct Tax collections for FY 2022-23 as on 16 June 2022 grew at over 45 percent over the collections made in FY 21-22 during the corresponding period. The figure for FY 2022-23 is at Rs. 3,39,225 cr compared to Rs. 2,33,651 cr in corresponding period of FY 21-22. The direct tax collections continue to grow at a robust pace making consistent leaps. It may be noted that the net collections in FY 2022-23 has grown 171% over the corresponding period of FY 20-21.
As the name implies, it is a direct tax on taxpayers. Direct taxes include income tax and corporation tax. Income tax is levied on income earned by individuals and businesses other than companies, during a particular financial year. Corporation tax is the money paid by companies on the profits, made by them in a given financial year.
Out of FY 22-23 collections of Rs. 3,39,225 cr, the Corporation Tax (CIT) is at Rs. 1,70,583 cr (net of refund) and Personal Income Tax (PIT) is at Rs. 1,67,960 crore (net of refund). The Advance Tax collections for the first quarter of the FY 2022-23 stand at Rs. 1,01,017 crore growing 33% over the corresponding period of preceding FY.
The TDS collections for FY 22-23 stand at Rs. 2,29,676 crore growing nearly 46% over corresponding period of preceding FY. Refunds amounting to Rs. 30,334 crore have also been issued in the F.Y. 2022-23.
The move to reduce the rate of taxation for individual’s incomes between Rs. 2.5 lakh and Rs. 5 lakh, from 10% to 5% eased the burden of the individuals with lower income. The aim was to encourage prospective tax payers to be a part of the tax paying community.
Direct Tax Receipts increased from `10,02,635 crore in 2017-2018 to 14,06,709 crore in 2021- 2022, which were its highest ever collection figures. Over 7.14 crore Income Tax Returns (ITRs) were filed for the assessment year 2021-22.
Indirect tax has also shown similar growth. In April of this year, for the first time gross GST collection has crossed Rs 1.5 lakh crore mark.