India’s direct tax receipts will grow by 20% in FY2023-24

In FY2023-24, India's direct tax receipts surged by almost 20%, reaching Rs 18.90 lakh crore by March 17, 2024. Deloitte India Partner Sumit Singhania attributes this growth to ongoing tax policy reforms, with increased advance tax collections indicating improved voluntary compliance. Third-party reporting, technological enforcement, and economic expansion bolstered tax revenues.

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As of March 17th, the Central Board of Direct Taxes (CBDT) has suggested a sizeable 19.88 percent surge in internet direct tax collections, surpassing Rs 18.90 lakh crore. This incredible uptick broadly speaking stems from heightened develop tax receipts.

The total amount of direct taxes collected includes Rs 9,14,469 crore (after refund deductions) for Corporation Tax, Rs 9,72,224 crore (publish-refund) for Personal Income Tax, and Rs 9,72,224 crore (STT). The Fiscal Year 2023–24 has seen an enormous 22.31 percent increase in advance tax receipts, totaling Rs 9.11 lakh crore, over the previous 12 months. 

The current fiscal year, till March 17, has witnessed refunds amounting to about Rs 3.37 lakh crore. Before accounting for those refunds, the aggregate direct tax series has reached Rs 22.27 lakh crore, marking a sturdy increase of 18.74 percent in comparison to the preceding fiscal year. The provisional statistics for direct tax collections as of March 17, 2024, suggest an internet collection of Rs 18,90,259 crore, showcasing a good sized surge from Rs 15,76,776 crore recorded at some point of the corresponding length inside the preceding monetary yr (FY 2022-23), reflecting an extensive 19 percentage upward thrust.

"88 percent," the CBDT said in a statement.

The government's updated projections for direct tax collection put the total collections for the fiscal year (April-March) at Rs 19.45 lakh crore.

What did Deloitte India Partner say?

According to Deloitte India Partner Sumit Singhania, a nearly 20% 12 months-on-12 months boom in tax receipts demonstrates the continued momentum of tax policy improvements applied at some stage in the 12 months, in preference to as part of the once-a-year budgetary procedure.

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"What also stands out is the significant growth in advance tax collections that arguably can account for growing voluntary compliances across taxpayers' categories," Singhania went on to say.

Shardul Amarchand Mangaldas & Co Partner Gouri Puri stated that third-party reporting mechanisms (such as TDS and TCS), the use of technological tools for tax enforcement (such as data analytics and AI) that have a deterrent effect on tax evasion, and India's growing economy all appear to be contributing to the country's year-on-year increase in tax collections.