Direct tax collections increased to 19% in the first four months of the current fiscal as demonetisation of higher denomination currency brought in more number of individuals in tax net. Collections of direct taxes, which are made up of personal and corporate taxes, soared to Rs 1.90 lakh crore in April-July, said reports. The collection, net of refunds, was 19.5 percent of the total Budget Estimate of direct taxes for 2017-18.
Corporate income tax grew 7.2% in gross terms and personal income tax by 17.5 percent.
“However, after adjusting for refunds, the net growth in corporate income tax collections is 23.2 percent while that in personal income tax collections is 15.7 percent,” the statement said, reported News 18. Over Rs 61,920 crore of tax refunds has been issued during April-July, 5.1 percent lower than issued in the same period of 2016-17.
Earlier this week, the government released the numbers of tax returns filed, showing demonetization of old Rs 500 and Rs 1,000 notes had given the substantial growth.
A number of tax returns filed soared to 2.83 crores as against 2.27 crore in the previous year. The growth of 24.7 percent this year compared with 9.9 percent in the year-ago period. Individual tax returns filed were up 25.3 percent at 2.79 crores.
“This clearly shows that a substantial number of new tax payers have been brought into the tax net subsequent to demonetisation,” the Central Board of Direct Taxes (CBDT) had said in a statement.
Direct tax collection in 2016-17, at Rs 8,49,818 crore, was 14.5% higher than the previous year – highest growth since 2013-14.