The latest provisional figures for Direct Tax collections for the Financial Year (FY) 2024-25, as of June 17, 2024, demonstrate significant growth. Here’s a detailed look at the data and what it indicates about the financial health and tax administration in India.
Key Highlights
Gross Direct Tax Collections
- Total Gross Collections: As of June 17, 2024, the gross direct tax collections stand at ₹5.15 lakh crore.
- Growth Rate: This represents a 22.19% increase compared to ₹4.22 lakh crore collected during the same period in the preceding fiscal year, FY 2023-24.
Net Direct Tax Collections
- Total Net Collections: Net direct tax collections have reached ₹4.62 lakh crore as of June 17, 2024.
- Growth Rate: This shows a 20.99% increase from ₹3.82 lakh crore collected during the same period in the previous fiscal year.
Advance Tax Collections
- Total Advance Tax: Advance tax collections for the first quarter of FY 2024-25 are at ₹1.48 lakh crore.
- Growth Rate: This marks a substantial growth of 27.34% over the ₹1.16 lakh crore collected during the same period in the preceding year.
Refunds Issued
- Total Refunds: Refunds amounting to ₹53,322 crore have been issued up to June 17, 2024.
- Growth Rate: This is 33.70% higher than the refunds issued during the corresponding period of the previous year.
Detailed Breakdown
Corporation Tax (CIT) and Personal Income Tax (PIT)
- Net CIT Collections: ₹1,80,949 crore (net of refunds).
- Net PIT Collections (including STT): ₹2,81,013 crore (net of refunds).
Gross Collections Before Adjusting for Refunds
- Total CIT Collections: ₹2,26,280 crore.
- Total PIT Collections (including STT): ₹2,88,993 crore.
Advance Tax Breakdown
- Total Advance Tax: ₹1,48,823 crore.
- CIT Component: ₹1,14,353 crore.
- PIT Component: ₹34,470 crore.
Minor Head-Wise Collections
- Tax Deducted at Source (TDS): ₹3,24,787 crore.
- Self-Assessment Tax: ₹28,471 crore.
- Regular Assessment Tax: ₹10,920 crore.
- Other Minor Heads: ₹2,985 crore.
Implications and Analysis
Economic Growth and Tax Compliance
The robust growth in direct tax collections indicates a strong economic recovery and improved tax compliance. The significant increase in advance tax collections reflects healthy corporate earnings and personal income growth, suggesting an overall positive economic environment.
Efficient Tax Administration
The increase in refunds issued is a testament to the efficiency of the tax administration, ensuring that taxpayers receive their due refunds in a timely manner. This also builds trust and encourages voluntary compliance among taxpayers.
Fiscal Health
The substantial growth in direct tax collections will provide a strong revenue base for the government, supporting its fiscal policies and expenditure programs aimed at economic growth and development.
Conclusion
The provisional figures for direct tax collections for FY 2024-25 demonstrate strong growth and efficient tax administration. With gross collections growing by 22.19% and net collections by 20.99%, the Indian economy shows resilience and robust recovery. The significant growth in advance tax collections and timely issuance of refunds further highlight the efficiency of the tax system and the positive economic sentiment in the country.
The continued focus on enhancing tax compliance and streamlining processes will be crucial for sustaining this growth trajectory and supporting India’s economic goals.
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