Direct tax collections cross 80% of the 2023-24 target

Syllabus: GS-III

Subject: Economic Development

Topic: Government Budgeting.

Context: India’s net direct tax collections hit ₹14.7 lakh crore by January 10, exceeding 80% of the fiscal year 2023-24 target. A substantial 19.4% growth.


Breakdown of Collections:

  • Gross collections expanded by 16.77% to ₹18 lakh crore.
  • Personal Income Tax (PIT) saw a significant 26.11% surge.
  • Corporate Income Tax (CIT) grew at a more moderate 8.32%.

Budget Progress:

This collection represents a solid 80.61% of the total Budget Estimates of Direct Taxes for FY 2023-24.

Future Projections:

Rating agency ICRA anticipates direct tax collections to surpass Budget estimates by ₹1 lakh crore, with an expected 18% growth over the provisional numbers for 2022-23.

Outlook for FY 2024-25:

A 12% growth in direct tax revenues is projected for the upcoming fiscal year.

Factors include favorable commodity prices and government initiatives to enhance compliance and broaden the tax base.



Conclusion: The data indicates a positive trajectory in direct tax collections, surpassing targets and reflecting a robust economic environment.

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