Direct tax collection jumps 24 per cent in first half of FY23

Gross collection of tax on corporate and individual earnings jumped nearly 24 per cent so far in the current fiscal year that started on April 1 the tax department said on SundayThe gross collection of taxes on corporate earnings rose 1674 per cent during April 1 to October 8 while personal income tax collection jumped 3230 per cent the tax department said in a statementDirect tax collection came at Rs 898 lakh crore between April 1 to October 8 2022 238 per cent higher than the gross collection in the corresponding period a year agoTax on corporate and individual income makes up for direct taxesAfter adjusting refunds direct tax collection stood at Rs 745 lakh crore 163 per cent higher than the net collection for the corresponding period a year ago the statement saidThis collection is 5246 per cent of the total Budget Estimates of Direct Taxes for FY 202223 it addedAlso Read PM Modi on 3day visit to pollbound Gujarat from todayTax collection is an indicator of economic activity in any country But in India the robust tax collection was despite a slowdown in industrial production and exportsSome analysts believe that the economic growth has lost momentum but corporate profits are keeping the engine runningThe Reserve Bank of India RBI last month cut its production of Indias GDP growth in the current fiscal to 7 per cent from 72 per cent previously estimated Other rating agencies too have lowered the economic growth projection for India citing impact of the geopolitical tensions tightening global financial conditions and slowing external demandSo far as the growth rate for corporate income tax CIT and personal income tax PIT in terms of gross revenue collection is concerned the growth rate for CIT is 1673 per cent while that for PIT including STT is 3230 per cent the Central Board of Direct Taxes CBDT saidAfter adjustment of refunds the net growth in CIT collection was 1629 per cent and that in PIT collection was 1735 per cent PIT only1625 per cent PIT including STTRefunds amounting to Rs 153 lakh crore have been issued during the period April 1 2022 to October 8 2022 81 per cent higher than the refunds issued during the same period in the preceding year it addedMerchandise exports have lost on the momentum of last years surge and shrunk by 35 per cent in September Trade deficit has nearly doubled in the first six months IIP growth was subdued at 24 per cent in July while the core sector hit a ninemonth low of 33 per cent in AugustThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever