Direct tax mop-up rises 20% to Rs 5.74 lakh cr on higher corporate advance tax

Direct tax mop-up rises 20% to Rs 5.74 lakh cr on higher corporate advance tax. Net direct tax collection grew 19.54 per cent to over Rs 5.74 lakh crore so far this fiscal on higher advance tax payment by corporates.

The first instalment of advance tax, which was due on June 15, rose 27.34 per cent to Rs 1.48 lakh crore. This includes Corporation Income Tax (CIT) at Rs 1.14 lakh crore and Personal Income Tax (PIT) at Rs 34,470 crore.

The net direct tax collection of Rs 5,74,357 crore (as of July 11, 2024) includes CIT at Rs 2,10,274 crore and PIT at Rs 3,46,036 crore, as per data released by Central Board of Direct Taxes (CBDT) on Saturday.

The government has issued direct tax refunds of Rs 70,902 crore till July 11 in 2024-25, which is an increase of 64.49 percent compared to Rs 43,105 crore it issued in the corresponding period in 2023-24. The government had in the revised estimates for direct tax collection pegged the receipts for the full fiscal (April-March) at Rs 21.99 lakh crore.

Healthy tax collection is significant since it helps the government meet its fiscal deficit target for a particular year. The Centre targeted a 5.2 percent fiscal deficit target for FY25 in the interim budget.