The tax department on Sunday said that the gross collection of tax on corporate and personal income has so far increased by nearly 24 per cent in the current financial year beginning April 1. The tax department said in a statement that during April 1 to October 8, there was a growth of 16.74 per cent in tax collection on corporate income, while 32.30 per cent in personal income tax collection.
Direct tax collection between April 1 and October 8, 2022 stood at Rs 8.98 lakh crore, which is 23.8 percent higher than the gross collection in the same period a year ago. The tax on corporate and personal income makes up for direct taxes.
The statement said that after adjusting refunds, the direct tax collection stood at Rs 7.45 lakh crore, which is 16.3 per cent higher than the net collection for the corresponding period a year ago. This collection is 52.46 per cent of the total budget estimate for direct taxes for the financial year 2022-23.
Tax collection is an indicator of economic activity in any country. But in India, strong tax collection was in spite of slowdown in industrial production and exports. Some analysts believe that economic growth has lost momentum but corporate profits are keeping the engine running.
Reserve Bank of India (RBI) last month slashed its output to 7 per cent of India’s GDP growth from 7.2 per cent in the current fiscal. Other rating agencies have also lowered economic growth forecast for India, citing the impact of geopolitical tensions, tightening global financial conditions and slowing external demand. “As far as the growth rate of Corporate Income Tax (CIT) and Personal Income Tax (PIT) in terms of gross revenue collection is concerned, the growth rate for CIT is 16.73 per cent, while the growth rate for PIT (including STT) is 32.30 per cent. . percent,” the Central Board of Direct Taxes (CBDT) said.
After adjustment for refunds, the net increase in CIT collection was 16.29 per cent and in PIT collection was 17.35 per cent (PIT only)/16.25% (PIT including STT). It said that refunds of Rs 1.53 lakh crore have been issued during the period April 1, 2022 to October 8, 2022, which is 81 per cent more than the refunds issued during the corresponding period of the previous year.
Merchandise exports have fallen at the pace of last year’s buoyancy and declined by 3.5 per cent in September. The trade deficit nearly doubled in the first six months. IIP growth slowed to 2.4 per cent in July, while the ‘core sector’ fell to a nine-month low of 3.3 per cent in August. The levy of tax on goods and services sold (GST) has increased the collection to around Rs 1.45-1.46 lakh crore per month.
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