Direct tax collections moderately exceeded the revised estimates (RE) by 0.7 per cent, on the back of personal income tax revenues, but corporation tax receipts fell short of the revised projections by 1.3 per cent during 2023-24.
The government had revised up projections for personal income tax by 13.5 per cent at Rs 10.22 trillion over the budget estimates of Rs 9 trillion for FY24. Even then, actuals (including securities transaction tax) exceeded the RE by 2.1 per cent at Rs 10.44 trillion.
Total direct tax revenues stood at Rs 19.58 trillion, up by Rs 13,000 crore over RE of Rs 19.45 trillion during FY24.
As such, while actual growth in personal income tax collections was higher at 25.3 per cent during the year against 22.7 per cent pegged in RE over mop-up in FY23, those of corporation tax were lower at 10.3 per cent against 11.7 per cent. The total direct tax collection grew 17.7 per cent year-on-year against 16.9 per cent pegged in RE.
If one adds refunds to the direct tax collections, the resultant gross direct tax collections grew 18.5 per cent at Rs 23.37 trillion during FY24 over Rs 19.72 trillion during FY23.
Refunds of Rs 3.79 trillion were issued during 2023-24, showing an increase of 22.7 per cent over Rs 3.09 trillion during FY23.
Gross personal income tax collections rose 24.3 per cent at Rs 12.01 trillion during FY24 over Rs 9.67 trillion a year ago.
Gross corporation tax collections were up 13.06 per cent at Rs 11.32 trillion during 2023-24 over Rs 10 trillion during FY23.
The Central Board of Direct Taxes (CBDT) did not respond to a query as to why corporation tax collections were slightly lower than the RE.
However, earlier CBDT Chairman Nitin Gupta had told Business Standard in October that the rate of growth in corporate collection would not pick up, attributing the slowdown to the concessional corporate tax regime (introduced in FY20). He said it would continue to grow at a “moderate” rate.
The government had cut the corporation tax rate to 22 per cent (25.17 per cent with cess and surcharge) from 30 per cent with effect from FY20 if companies do not avail any exemptions and incentives. Also, the tax rate was cut to 15 per cent for any new domestic company incorporated on or after 1 October 2019, which makes fresh investment in manufacturing until 31 March 2023. This was later extended until 31 March 2024.
First Published: Apr 21 2024 | 6:45 PM IST
