NEW DELHI : Direct tax revenue as a share of gross domestic product (GDP) touched a record 6.1% in FY23 amid a strong growth in mop-ups and an increase in the number of tax payers, the Central Board of Direct Taxes (CBDT) said on Tuesday. The share of women in the total number of Permanent Account Numbers (PAN), needed for a host of financial transactions, also improved to 41% at the end of March 2023, up from 37.2% at the end of March 2019, suggesting increased participation of women in financial activity, data shared by CBDT showed. Women in the age group of 20-40 years accounted for close to two-fifths of all PAN numbers issued by the end of March 2023.
At the end of March 2023, 272.4 million women and 390.2 million men had been issued PAN. At the end of March 2019, only 161.7 million women and 273.5 million men had PAN. The unique number is required for securing a debit or credit card and for entering into a host of transactions including buying motor vehicles other than two wheelers, opening DMAT accounts, and buying foreign exchange.
Making hotel payments in cash or bank deposits of over ₹50,000 in a day also requires PAN number. CBDT said in a statement that the Centre’s net direct tax receipt after adjusting for tax refunds has jumped about 161% from FY14 to ₹16.63 trillion in FY23. Corporate and personal income tax payers contribute roughly equally in this.
The direct tax-to-GDP ratio which was at 5.62% in FY14, steadily rose and touched 6.1% in FY23, the highest since financial year 2000-01, the period for which data is readily available. This shows a widening tax base as more economic activities move into the formal sector, according to Amit Maheshwari, tax partner at AKM Global, a tax and consulting firm. The
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