In a positive development, Central Board of Direct Taxation (CBDT) chairman Nitin Gupta announced on Wednesday that the government is on track to exceed the ₹18.23 lakh crore direct tax collection target set for the current fiscal year. Gupta expressed confidence in surpassing the budgeted target, attributing the optimistic outlook to the robust performance of the economy.
Speaking to reporters in New Delhi, Gupta stated, "The economy is doing well, and we will get a better picture of full-year tax collection once the third installment of advance tax numbers come in by December 15."
Government data reveals a substantial growth in net direct tax collection between April 1 and November 9 of the current fiscal year, with a notable increase of 22%, reaching ₹10.60 lakh crore. Gupta highlighted that the direct tax collection has been growing at a rate of 17-18% on a gross basis, and 22% on a net basis. Simultaneously, the issuance of refunds totaling ₹1.77 lakh crore has been underway between April 1 and November 9.
The positive trend in tax collection aligns with the 2023-24 Budget, which has set the direct tax collection target at ₹18.23 lakh crore. This figure represents a 9.75% increase from the ₹16.61 lakh crore collected in the last fiscal year.
Gupta, after inaugurating the taxpayers’ lounge at the India International Trade Fair (IITF), expressed confidence in the government's ability to surpass the estimated tax collection, emphasizing the concurrent issuance of refunds as a contributing factor to the positive outlook.
As the economy continues to perform well, stakeholders and analysts are keenly awaiting the third installment of advance tax numbers by December 15 for a more comprehensive assessment of the fiscal year's tax collection trajectory. The government's surpassing of the budgeted target signifies a positive fiscal trend and underscores the resilience of the economy.