NET DIRECT TAX
COLLECTIONS - ECONOMY
News: Net direct tax collections
exceed 2023-24 target
What's in the news?
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The net direct tax collections of India grew 17.7%
in 2023-24 to hit ₹19.58 lakh crore.
Key takeaways:
●
The Budget Estimates (BE) for Direct Tax revenue in
the Union Budget for FY 2023- 24 have been fixed at Rs. 18.23 lakh crore which
were revised and the Revised Estimates (RE) were fixed at Rs. 19.45 lakh crore.
●
The provisional Direct Tax collections (net of the
refunds) have handed the BE by 7.40% and RE by 0.67%.
Direct Tax Collections:
●
The Net collections (provisional) of Direct Tax
collections for the FY 2023-24 show that Net collections are at Rs. 19.58 lakh crore, in comparison to
Rs. 16.64 lakh crore in the preceding Financial Year i.E. FY 2022-23,
representing an increase of 17.70%.
●
The Gross collection (provisional) of Direct Taxes
(before adjusting for refunds) for the FY 2023-24 stands at Rs. 23.37 lakh
crore showing a growth of 18.48% over the gross collection of Rs. 19.72 lakh
crore in FY 2022-23.
Corporate Tax:
●
The Gross Corporate Tax collection (provisional) in
FY 2023-24 is at Rs. 11.32 lakh crore
and has shown a growth of 13.06%
over the gross company tax collection of Rs. 10 lakh crore of the previous
year.
●
The Net Corporate Tax collection (provisional) in
FY 2023- 24 is at Rs. 9.11 lakh crore and has proven a boom of 10.26% over the
internet company tax collection of Rs. 8.26 lakh crore of the previous year.
Personal Income Tax:
●
The Gross Personal Income Tax collection (along
with STT) (provisional) in FY 2023- 24 is at Rs. 12.01 lakh crore and has shown
a rise of 24.26% over the Gross
Personal Income Tax collection (including STT) of Rs. 9.67 lakh crore of the
preceding year.
●
The Net Personal Income Tax collection (along with
STT) (provisional) in FY 2023-24 is at Rs. 10.44 lakh crore and has shown a
rise of 25.23% over the Net Personal Income Tax collection (inclusive of STT)
of Rs. 8.33 lakh crore of the preceding year.
●
Refunds of Rs. 3.79 lakh crore have been issued
within the FY 2023-24 displaying an increase of 22.74% over the refunds of Rs.
3.09 lakh crore issued in FY 2022-23.
Go back to basics:
Direct Taxes:
●
Direct taxes are imposed on the premise of people's capacity to pay precept, which
says that those individuals or groups getting access to more assets and earning
a better income need to pay higher taxes.
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The direct rules are framed such that taxes come to
be a method to redistribute money in the country.
Types of Direct Taxes:
1. Estate Tax:
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It is also called Inheritance Tax and is paid based on the value of the estate or the
money that an individual has left after his/her death.
2. Income tax:
●
It is a tax charged on the annual income of an
individual or commercial company earned in a financial year.
3. Wealth Tax:
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The tax needs to be paid on a yearly basis and
depends on the possession of properties and the market cost of the asset.
4. Corporate Tax:
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A corporate tax is a tax on the income or net
income of a company.
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Corporate tax is paid on a company’s taxable income
which incorporates organization’s sales after deductions consisting of fee of
goods offered (COGS), general and administrative (G&A) expenses, selling
and marketing, depreciation, research & development etc.
5. Capital Gains Tax:
●
It is a form of direct tax that is paid due to the
income that is earned from the sale of asset or investments.
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Investments in farms, bonds, shares, corporations,
art, and home come under capital assets.