New Delhi: The growth rate of direct tax (DT) collection of India has dipped 17% in the year 2022-23 as compared to the year 2021-22. Though the direct tax collections in the current fiscal (2022-23) has increased by 30% as compared to the collections in the fiscal 2021-22.
Reports said that DT collection went up to 47% in the 2021-22, vis-à-vis the collection in the previous fiscal. The DT collection for the current fiscal (up to September 17) stands ₹7,00,669 cr against ₹5,68,147 crore. DT in the fiscal 2020-21 stood at ₹3,27,174 crore. Officials said that growth rate of DT collection was 47% in 2021-22 against collection in 2020-21.
Likewise, growth rate of advance tax collection (ATC) in 2022-23 dipped by 39% if compared with its growth in 2021-22. The ATC grew in 2022-23 by 17% as compared to 2021-22. The year 2021-22 had shown 56% increase in ATC over the 2020-21 fiscal, even during the phase of Covid pandemic.
However, an official communique issued by the Press Information Bureau on September 18 stated that DT collections continue to grow at a robust pace, which is a clear indicator of the revival of economic activity post pandemic, as also the result of the stable policies of the Government, focusing on simplification and streamlining of processes and plugging of tax leakage through effective use of technology.
The figures of DT collections for the FY 2022-23, as on 17.09.2022 show that net collections are at ₹7,00,669 crore, compared to ₹5,68,147 crore in the corresponding period of the preceding financial year i.e. FY 2021-22, representing an increase of 23%. The Net DT collection of ₹7,00,669 crore (net of refund) includes corporation tax (CIT) at ₹3,68,484 crore and personal income tax (PIT) including securities transaction tax (STT) at ₹3,30,490 crore.
The gross collection of DT (before adjusting for refunds) for the FY 2022-23 stands at ₹8,36,225 crore compared to ₹6,42,287 crore in the corresponding period of the preceding Financial Year i.e. FY 2021-22, registering a growth of 30% over collections of FY 2021-22.
The Gross collection of ₹8,36,225 crore includes Corporation Tax (CIT) at ₹ 4,36,020 crore and PIT including STT at ₹3,98,440 crore. Minor head wise collection comprises advance tax of ₹2,95,308 crore; tax deducted at source (TDS) of ₹4,34,740 crore; self-assessment tax of ₹77,164 crore; regular assessment tax of ₹20,080 crore; and tax under other minor heads of ₹8,933 crore.
The cumulative advance tax collections for the first and second quarter of the FY 2022-23 stand at ₹2,95,308 crore as on 17.09.2022, against advance tax collections of ₹2,52,077 crore for the corresponding period of the immediately preceding Financial Year i.e FY 2021-22, showing a growth of 17%. The advance tax collection of ₹2,95,308 crore comprises CIT at ₹2,29,132 crore and PIT at ₹66,176 crore.
There has been a remarkable increase in the speed of processing of income tax returns (ITRs) filed during the current fiscal, with almost 93% of the duly verified ITRs having been processed till 17.09.2022. This has resulted in faster issue of refunds with almost a 468% increase in the number of refunds issued in the current financial year. Refunds amounting to ₹1,35,556 crore have been issued in the FY 2022-23 till 17.09.2022, as against refunds of ₹74,140 crore issued during the corresponding period in the preceding Financial Year 2021-22, showing a growth of over 83%.
