FY22 tax collections at Rs 27.07 lakh crore, exceed revised estimate by 7.6%

"The total tax collection figure is currently tentative and we expect some upside to the number,"  Bajaj told reporters.

Direct tax collections amounted to Rs 14.10 lakh crore, while indirect tax collections came in at Rs 12.90 lakh crore in FY22. The balance Rs 7,000 crore came from other taxes.

Within direct taxes, corporate tax collections for the fiscal under review were up 33 percent year-on-year at Rs 8.59 lakh crore, while personal income tax collections were 32 percent higher at Rs 7.49 lakh crore.

"This revenue growth has been propelled by rapid economic recovery after successive waves of COVID, supported by one of the largest immunisation programme of the world run by the Government," the finance ministry said in a statement.

"It also signifies a robust recovery in the economy. These was also supplemented with better compliance efforts in taxation. Various efforts were taken by tax administration on direct as well indirect taxes to nudge higher compliance through use of technology and artificial intelligence," it added.

Bajaj also pointed out that the FY22 tax-to-GDP ratio of 11.7 percent was one of the highest since 1999.

In terms of tax buoyancy, the overall tax tax buoyancy was 1.9 in FY22, with direct tax buoyancy at 2.8 and indirect tax buoyancy at 1.1.