‘Sign of economic recovery’: Gross direct tax collections rise 30% to Rs 8.36 lakh crore in FY23

New Delhi: The central government’s gross direct tax revenue increased by 30 percent to Rs 8,36,225 crore in the financial year 2022-23, the Ministry of Finance informed on Sunday. Net inflow also jumped by 23% to Rs 7,00,669 crore from Rs 5,68,147 crore in the 2021-22 financial year. These numbers are through September 17, 2022.

Citing the figures, the ministry said the increase in collections was a clear indicator of the recovery of economic activity after the pandemic.

Net collection of direct tax of Rs 7,00,669 crore (net of refund) includes Corporation Tax (CIT) at Rs 3,68,484 crore and Personal Income Tax (PIT) including Securities Transaction Tax (STT) at Rs 3,30,490 crore.

Gross inflow (before adjustment for refunds) for the 2022-23 financial year stands at Rs 8,36,225 crore compared to Rs 6,42,287 crore in the previous financial year. The gross collection includes CIT at Rs. 4,36,020 crore and PIT including STT at Rs. 3,98,440 crore.

“The collection per minor head consists of advance tax of Rs 2,95,308 crore; withholding tax of Rs 4,34,740 crore; self-assessment tax of Rs. 77,164 crore; regular assessment tax of Rs. 20,080 crore; and a tax under other miners heads of Rs. 8,933 crore,” the ministry said.

Cumulative advance tax collections for the first and second quarters of FY 2022-23 stand at Rs 2,95,308 crore as of September 17, compared to advance tax collections of Rs 2,52,077 crore for the corresponding period of the fiscal year 2021-22, posting a growth of 17 percent.

There has been an increase in the processing speed of tax returns filed in the current fiscal year, with almost 93% of duly verified ITRs having been processed by September 17, the ministry said.

This has resulted in faster issuance of refunds with an increase of almost 468% in the number of refunds issued in the current fiscal year. “Refunds in the amount of Rs. 1,35,556 crore were issued during the financial year 2022-23 till 17.09.2022, against refunds of Rs. 74,140 crore issued during the corresponding period of the prior fiscal year 2021-22, showing growth of over 83%,” the statement said.