Key Points
Corporate tax rises to Rs 12.40 lakh crore
Personal income tax collections surge to Rs 12.90 lakh crore
Net direct tax collection jumps 13.13%
Refunds increase by 32.51%
Direct taxes comprise corporate tax, personal income tax and securities transaction tax.
Corporate tax collections rose to Rs 12.40 lakh crore in the current financial year as of March 16, from Rs 10.1 lakh crore in the same period of the previous financial year.
Personal income tax collections surged to Rs 12.90 crore during this period from Rs 10.91 lakh crore in the same period of the last fiscal year.
Securities transaction tax (STT) collections also recorded a sharp increase, reaching Rs 53,095 crore, compared to Rs 34,131 crore in the previous year.
Other taxes, including wealth tax, saw a marginal decline from Rs 3,656 crore to Rs 3,399 crore.
After accounting for refunds, which also recorded a substantial increase of 32.51 per cent to Rs 4.6 lakh crore, the net direct tax collection stood at Rs 21.26 lakh crore, reflecting a 13.13 per cent jump from the corresponding figure of Rs 18.8 lakh crore in the same period last year.
The buoyancy in tax collections reflects a strong macroeconomic financial position with the government raising more funds to undertake investments in large infrastructure projects to spur economic growth and take up welfare schemes for the poor.
It also helps to keep the fiscal deficit in check. A lower fiscal deficit means the government has to borrow less which leaves more money in the banking system for big companies to borrow and invest. This in turn leads to a higher economic growth rate and the creation of more jobs.
Besides, a low fiscal deficit keeps the inflation rate in check which strengthens the fundamentals of the economy and ensures growth with stability.
