Direct tax collection increases by more than 17% in FY23, exceeding revised projections by 0.7%

For the fiscal year 2022–23, the government collected Rs 16.61 lakh crore in direct taxes, according to data from the Finance Ministry. This amount is 17.6 percent more than what was collected for the previous fiscal.  Additionally, it has slightly surpassed the revised estimate of Rs 16.5 lakh crore, as mentioned in the 2023-24 Union Budget, by 0.7%.

The finance ministry in a statement said , “refunds of Rs 3,07,352 crore (Rs 3.07 lakh crore) have been given out in FY 2022-23, which is 37.42 percent more than the refunds of Rs 2,23,658 crore (Rs 2.24 lakh crore) that were given out in FY 2021-22.”

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Without taking refunds into account, direct tax collections in 2022-23 will be Rs 19.68 lakh crore, which is up 20.3% from 2021-22.

In terms of how the money was collected, the preliminary data shows that the gross corporate tax collections in 2022–23 were Rs 10.04 lakh crore, which was 16.9% more than in 2021–22. The finance ministry said that in 2021-22, the amount of personal gross income tax collected went up by 24.2% to Rs 9.61 lakh crore.

Due to higher-than-expected direct tax collections in 2022–23, the government now expects direct tax collections to grow by 9.8 percent in 2023–24, instead of the 10.5 percent growth predicted in the Budget presented on February 1, which was based on the nominal growth in GDP that the finance ministry had assumed.

According to the Budget, the government expects to get Rs 18.24 lakh crore in direct taxes in 2023–24. Of this amount, Rs 9.23 lakh crore will come from taxes on corporations, and Rs 9.01 lakh crore will come from taxes on personal income.

Since the numbers the finance ministry put out today are only estimates, they could go up even more.

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