Net Direct Tax Collection increases 16% annually to Rs.9.95 Trillion till September 17

Net direct tax collection after refunds has increased by 16% this financial year to Rs.9.95 trillion, owing to strong growth in taxes on personal and corporate incomes, as well as securities trade, according to the Central Board of Direct Taxes (CBDT) on Wednesday.

This comprises significant personal and corporate income tax receipts collected in the first and second installments. The second of four annual installments was due on September 15.

Individuals and businesses have already paid Rs.4.36 trillion in advance tax so far, showing a 23% increase over the same period last year.

The robust growth was led by advance personal income tax collected up to September 17, which increased by 39% annually to Rs.1 trillion, while advance corporate tax collections increased by 18% to Rs.3.3 trillion, according to CBDT data.

So far this year, the income tax department issued refunds totalling Rs.2 trillion, showing a 57% increase over the same period last year.

Before adjusting for tax refunds, gross direct tax receipts from personal and corporate incomes, as well as security trade, totalled Rs.12 trillion, representing a 21.5% yearly increase.

Tax revenue from securities transactions (STT) nearly doubled to Rs.26,154 crore between 1 April and 17 September this year, indicating strong stock market activity. STT receipts were Rs.13,352 crore last year at this time.

The government intends to collect Rs.22 trillion in direct taxes this financial year, according to Union budget documents. Of this, Rs.11.87 trillion is estimated to come from personal income tax.