Net direct tax collection rises 13 percent to Rs 12.12 lakh crore

New Delhi: The government’s net direct tax collection rose 13 percent year-on-year to over Rs 12.12 lakh crore between April 1 and September 17 of the current financial year, supported by higher corporate tax receipts and advance tax payments.

Data released by the Central Board of Direct Taxes (CBDT) on Friday showed that gross direct tax collection, before adjusting for refunds, increased 15 percent to over Rs 14.32 lakh crore.

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The figures indicate that collections continued to grow despite a sharp increase in refunds, although corporate tax receipts expanded considerably faster than those from non-corporate taxpayers.

Corporate tax growth outpaces individual collections

Net corporate tax collection increased 19.48 percent to about Rs 5.56 lakh crore. Non-corporate tax receipts, which include taxes paid by individuals and Hindu Undivided Families (HUFs), rose 6 percent to over Rs 6.16 lakh crore.

Non-corporate taxes remained the larger contributor in absolute terms, but corporate tax recorded a stronger growth rate during the period.

Securities Transaction Tax (STT) collection surged 53 percent to Rs 40,214 crore. While STT registered the fastest growth among the reported categories, its contribution remained much smaller than corporate and non-corporate taxes.

Refunds rise faster than gross collections

Tax refunds increased 29.19 percent to over Rs 2.20 lakh crore through September 17, outpacing the 15 percent growth in gross collections.

Net collections represent the amount retained by the government after refunds are deducted from gross receipts. The faster increase in refunds explains why net collection growth, at 13 percent, was lower than gross collection growth.

Based on the rounded figures released by CBDT, refunds accounted for roughly 15.4 percent of gross direct tax receipts during the period.

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Advance tax receipts cross Rs 5.22 lakh crore

Advance tax collection rose 16.18 percent to about Rs 5.22 lakh crore, with companies accounting for the bulk of payments.

Corporate advance tax receipts increased 18 percent to over Rs 4.16 lakh crore, while non-corporate advance tax payments grew 9.24 percent to Rs 1.06 lakh crore.

Companies contributed approximately four-fifths of total advance tax receipts, underlining their role in driving collections during the period.

Advance tax is paid in instalments during the financial year against estimated tax liability. These payments provide the government with revenue during the year, ahead of the final settlement of taxpayers’ annual liabilities.

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