The Centre’s advance direct tax receipts for the third quarter of the current fiscal from companies, LLPs and individuals rose by a robust 19% on year to Rs 2.69 trillion, as per data till December 15. The collections were aided by a sharp increase in income tax receipts and further consolidation on the corporate tax front.
The strong growth in corporate tax mop-up came on the back of broad-based improvement in profitability across various sectors, which was helped by lower input costs.
According to an FE analysis, direct tax collections—after refunds and before transfers to states—could exceed the FY24 budget target by over Rs 1 trillion. The receipts so far account for 75% of the FY24 target of Rs 18.23 trillion. Till December 15, corporation tax collections were Rs 6.94 trillion compared with Rs 6.07 trillion in the year-ago period, an annual increase of 14.5%.
Personal income tax mop-up was Rs 6.75 trillion, up a significant 28% on year. After weakness in the first quarter of FY24, the turnaround in corporate tax receipts in Q2 was further consolidated in Q3 of the year.
Personal income tax, including securities transaction tax, remained robust with an annual growth of 28% at Rs 6.75 trillion till December 15, 2023.
Direct tax refunds declined by a marginal 1% on year to Rs 2.25 trillion from Rs 2.28 trillion in the year-ago period.
So far in the current fiscal, TDS and TCS receipts stood at Rs 7.61 trillion, securities transaction tax at Rs 21,628 crore and equalisation levy of Rs 2,596 crore.