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