India’s Direct Tax Collection Exceeds Budgeted Estimate by 17% in FY23

In the fiscal year FY23, India experienced a robust increase in direct tax collection. According to official data released by the Ministry of Finance on Monday, the direct tax collection for FY 2023 has increased by 17.63% compared to the previous year, with a total collection of Rs. 16.61 lakh crores. Sources from the Central Board of Direct Taxes (CBDT) have confirmed that this marks the highest ever direct tax collection in this financial year. Furthermore, the collections surpassed the estimated budget by an impressive Rs. 2.41 lakh crore.

In the fiscal year FY22, the direct tax collections in the country amounted to Rs. 14.12 lakh crore.

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During the financial year FY23, the initial budgeted estimates (BE) for direct tax were set at Rs. 14.20, but were later revised, and the Revised Estimates (RE) were set at Rs.16.50 lakh crore.

Having said that, direct tax collections (net of the refunds) have surpassed the initial budgeted estimates (BE) by Rs. 2.41 lakh crore, representing a 16.97% increase. Additionally, it exceeded the revised estimates (RE) by 0.69%.

Moreover, the gross direct tax collections for FY23 amounted to Rs. 19.68 lakh crore, indicating a year-on-year growth of 20.33%, in contrast to the collections of ₹16.36 lakh crore recorded in FY22.

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The gross tax collections comprised corporate and personal taxes. Corporate tax collections amounted to Rs. 10,04,118 crore, representing a YoY growth of 16.91%. Similarly, personal tax collections on a gross basis amounted to Rs. 9,60,764 crore, indicating a YoY growth of 24.23% in FY23.

In FY22, corporate taxes grossed ₹8,58,849 crore, while personal taxes grossed Rs. 7,73,389 crore. Refunds worth Rs. 3,07,352 crore were issued in FY23, representing a 37.42% increase over the Rs. 2,23,658 crore in refunds issued in FY21-22.