Net direct tax receipts up 19.4% to ₹14.7 tn

livemint.com:

₹14.7 trillion from the receipts made in the same time a year ago, finance ministry said on Thursday, showing strong tax buoyancy. Net direct tax receipts so far this year accounts for 80.61% of the total budget estimates for direct taxes for the current fiscal. The ministry said quoting provisional figures that corporate and personal income tax collections continue to register steady growth.

The Centre had kept a direct tax collection target of ₹18.2 trillion for this financial year, expecting to collect 10.5% more than what was collected in the year before. That was in line with the 10.5% nominal GDP growth forecast in the Union budget for this year, at ₹301.75 trillion. However, the first advance estimate shows that GDP is likely to grow in nominal terms at 8.9% to ₹296.57 trillion.

Revenue collection growth depends on both the nominal GDP growth rate as well as the rate at which tax collection grows over economic growth rate, or tax buoyancy. Gross direct tax receipts before accounting for refunds stood at ₹17.18 trillion up to 10 December, showing a 16.77% growth from the receipts made in the same time a year ago. Gross corporate income tax receipts before refunds showed an 8.32% growth in the period under review while gross personal income tax receipts showed 26.11% growth, the ministry said.