According to the CBDT data, net direct tax collection stood at over Rs 12.12 lakh crore as of September 17, registering a 13 percent increase compared with the corresponding period of the previous year.
Direct taxes mainly include income tax paid by individuals and other non-corporate taxpayers, as well as corporate income tax paid by companies. The latest figures indicate an increase in tax collections during the first part of the current financial year.
The government has been closely monitoring tax collections as they form an important part of its revenue receipts and help finance public expenditure and government programmes.
The increase in net collections also came despite a rise in refunds issued to taxpayers during the period.
Corporate tax collection rises 19.48 percent
Corporate tax collection recorded stronger growth during the period.
The data showed that corporate tax mop-up increased by 19.48 percent to around Rs 5.56 lakh crore between April 1 and September 17.
Corporate tax is paid by companies on their taxable income. The increase in collections was supported by higher advance tax payments made by companies during the period.
Non-corporate tax collection, which includes taxes paid by individuals, Hindu Undivided Families (HUFs) and other taxpayers, also increased.
The non-corporate tax mop-up rose by around 6 percent to more than Rs 6.16 lakh crore.
Together, corporate and non-corporate taxes formed the major components of direct tax collections during the period.
Advance tax payments rise 16.18 percent
Higher advance tax payments were one of the key factors behind the increase in overall direct tax collections.
Advance tax collection rose 16.18 percent to around Rs 5.22 lakh crore by September 17.
Advance tax is paid during the financial year by taxpayers whose estimated tax liability crosses the prescribed threshold. Instead of paying the entire tax amount at the end of the year, eligible taxpayers make payments in instalments.
The latest figures showed that corporate advance tax payments grew faster than non-corporate advance tax payments.
Corporate advance tax increased by around 18 percent to more than Rs 4.16 lakh crore.
Non-corporate advance tax payments rose by 9.24 percent to around Rs 1.06 lakh crore.
The rise in advance tax payments contributed significantly to the overall growth in net direct tax collections.
Gross direct tax collection up 15 percent
The CBDT data also showed a strong increase in gross direct tax collections before accounting for refunds.
Gross direct tax collection rose by around 15 percent to more than Rs 14.32 lakh crore during the period.
The difference between gross and net collections is mainly due to refunds issued to taxpayers.
The growth in gross collections indicates that the overall amount collected through direct taxes increased during the first part of the financial year.
Tax refunds rise 29.19 percent
Tax refunds also increased significantly during the period.
According to the CBDT data, refunds issued to taxpayers rose by 29.19 percent to more than Rs 2.20 lakh crore as of September 17.
Refunds are issued when taxpayers have paid more tax than their final tax liability or become eligible for a refund after assessment and processing of their returns.
Despite the substantial increase in refunds, net direct tax collections continued to record 13 percent growth.
The data therefore reflects both higher tax collections and a rise in the amount returned to taxpayers during the period.
Securities transaction tax collection jumps 53 percent
Another major increase was recorded in Securities Transactions Tax (STT) collections.
STT collection rose by 53 percent to around Rs 40,214 crore between April 1 and September 17.
STT is levied on specified transactions involving securities in recognised stock exchanges and certain other market transactions.
The sharp increase in STT collection formed part of the broader rise in direct tax receipts recorded during the period.
What the numbers show
The latest tax data shows that the government’s direct tax collections have continued to rise during the first half of the financial year.
Corporate tax has recorded stronger growth than non-corporate tax, while advance tax payments have also increased significantly. Corporate advance tax payments grew by 18 percent, compared with a 9.24 percent increase in non-corporate advance tax.
At the same time, refunds have increased by more than 29 percent, indicating that a larger amount has also been returned to taxpayers.
The government will continue to receive advance tax payments during the remaining instalments of the financial year. The final tax collection figures will depend on collections during the rest of the year, refunds and other factors.
For now, the CBDT data up to September 17 shows net direct tax collection of over Rs 12.12 lakh crore, gross collection of more than Rs 14.32 lakh crore, advance tax collection of around Rs 5.22 lakh crore and refunds exceeding Rs 2.20 lakh crore.
