India's net direct tax collections have grown 15.9 percent to Rs 16.89 lakh crore in the current financial year from Rs 14.58 lakh crore in the year-ago period, the income tax department has said.
The Central Board of Direct Taxes (CBDT) said net direct tax collection of Rs 16.89 lakh crore, until January 12, includes corporate tax at Rs 7.68 lakh crore (net of refund), non-corporate tax at Rs 8.74 lakh crore and securities transaction tax at Rs 44,538 crore (net of refund).
Direct taxes, which are levied on the income or profit of a person, are directly paid by an individual to the government. Common examples of direct taxes are income tax, property tax, corporate tax, wealth tax, gift tax, security transaction tax, and capital gains tax.
The government issued direct tax refunds of Rs 3.74 lakh crore till January 12, an increase of 42.49 percent in the corresponding period of 2023-24.
While the non-corporate tax collection grew 21.5 percent growth in advance tax, corporate tax grew by only 8 percent.
Tax collection is significant since it helps the government meet its fiscal deficit target. The Centre set a 4.9 percent fiscal deficit target for FY25 in the July budget.
On a gross basis, before adjusting refunds, the direct tax collection was at Rs 20.64 lakh crore till January 12, a 19.9 percent growth over the year-ago period.
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