Direct tax collections up 24.3% in April-Nov, despite high refunds
The Centre’s direct tax collections, net of refunds, have increased by over 24% on year in the first eight months of the current fiscal, indicating continued revenue buoyancy and recovery in economic activities.
The collections amounted to Rs 8.77 trillion between April and November 30 this fiscal, registering a 24.26% growth compared to the corresponding period last fiscal. “This collection is 61.79% of the total Budget Estimates of direct taxes for the fiscal 2022-23,” the finance ministry said in a tweet on Monday.
The Centre has pegged its gross direct tax collections (before devolution to states) at Rs 14.2 trillion for the fiscal and indications are that it will surpass the target. Revenue from corporate and personal income tax primarily make up the direct tax kitty.
A better picture on the trend in direct tax collections will arise based on the advance tax tranche on December 15.
The ministry said it has processed refunds amounting to Rs 2.15 trillion between April 1, 2022 and November 30, 2022. This is 66.92% higher than refunds processed in the same period in the last fiscal.
As many as 69.7 million income tax returns for assessment year 2022-23 have been filed by November 30. This year, maximum number of returns at over 51.3 million, were filed in July.
Highlighting efforts in processing of income tax returns, the ministry said that the average processing time has come down to just 16 days this fiscal from 26 days last fiscal.
Approximately 45% of returns are processed within 24 hours of filing and 74% within seven days of filing.
“More than 24.2 million ITRs were processed in a single day for assessment year 2022-23,” it further stated. About 96.5% of the returns filed till November 30 have already been e-verified. The period of verification has been reduced from 120 days to 30 days.
Verification of income tax return is a prerequisite for processing.