Net Direct Tax Collections For The FY 2022-23 Have Grown At 23 Per Cent So Far
In the backdrop of stable policies of the Government, focusing on simplification and streamlining of processes and plugging of tax leakage through effective use of technology resulted in the revival of economic activity after pandemic with direct tax collections continue to grow at a robust pace.
According to the government data, the figures of Direct Tax collections for the Financial Year (FY) 2022-23 so far show that net collections are at INR 7,00,669 crore, compared to INR 5,68,147 crore in the corresponding period of the FY 2021-22, representing an increase of 23 per cent.
The Net Direct Tax collection of INR 7,00,669 crore (net of refund) includes Corporation Tax (CIT) at INR 3,68,484 crore and Personal Income Tax (PIT) including Securities Transaction Tax (STT) at INR 3,30,490 crore.
The Gross collection of Direct Taxes (before adjusting for refunds) for the FY 2022-23 stands at INR 8,36,225 crore compared to INR 6,42,287 crore in the corresponding period of the preceding FY 2021-22, registering a growth of 30 per cent over collections of FY 2021-22.
The Gross collection of INR 8,36,225 crore includes Corporation Tax (CIT) at INR 4,36,020 crore and Personal Income Tax (PIT) including Securities Transaction Tax(STT) at INR 3,98,440 crore. Minor head wise collection comprises Advance Tax of INR 2,95,308 crore; Tax Deducted at Source of INR 4,34,740 crore; Self-Assessment Tax of INR 77,164 crore; Regular Assessment Tax of INR 20,080 crore; and Tax under other minor heads of INR 8,933 crore.
The cumulative Advance Tax collections for the first and second quarter of the FY 2022-23 stand at INR 2,95,308 crore so far, against Advance Tax collections of INR 2,52,077 crore for the corresponding period of the immediately preceding FY 2021-22, showing a growth of 17 per cent. The Advance Tax collection of INR 2,95,308 crore comprises Corporation Tax (CIT) at INR 2,29,132 crore and Personal Income Tax (PIT) at INR 66,176 crore.
There has been a remarkable increase in the speed of processing of income tax returns filed during the current fiscal, with almost 93 per cent of the duly verified ITRs having been processed till September 17, 2022. This has resulted in faster issue of refunds with almost a 468 per cent increase in the number of refunds issued in the current financial year. Refunds amounting to INR 1,35,556 crore have been issued in the FY 2022-23 till September 17, 2022, as against refunds of INR 74,140 crore issued during the corresponding period in the preceding Financial Year 2021-22, showing a growth of over 83 per cent.