Direct Tax Kitty Exceeds Revised Estimates by 9%

Direct tax net revenue increased 42.5% from pre-COVID levels; Input tax increased by 50.6%

Direct tax net revenue increased 42.5% from pre-COVID levels; Input tax increased by 50.6%

India’s net direct tax receipts for the year are 48.4% higher than 2020-21 and 42.5% higher than before the pandemic, the Finance Ministry said on Thursday, March 16.

In absolute terms, net direct tax revenue was more than 13.63 lakh crore, compared to 9.18 lakh crore in the same period of COVID-hit fiscal year 2020-21 and 9.56 lakh crore in 2019-20.

Net direct tax receipts are significantly higher than the Union budget target for 2021-22 of 11.08 lakh crore, which was later revised to 12.5 lakh crore. This represents a 23% increase over the original budget estimates.

While corporate taxes accounted for 52.75% or 7.19 lakh crore of the net amount of direct taxes, the remainder was income taxes and securities transaction taxes after the refunds were netted.

Gross tax revenue increased by 38.34% from 2020-2021 and by 36.72% from 2019-2020, reaching £15,50,364.2 million as of Wednesday, according to the ministry. Pre-tax gross receipts increased by 50.6% from the pre-COVID level of 2019-20, while tax refunds of ₹1,87,325.9 million were already remitted in 2021-22.

“The input tax figure of ₹6,62,896.3 billion on March 16 includes corporate income tax of 4,84,451.8 crore and personal income tax of 1,78,441.1 crore. This amount is expected to increase as more information is awaited from banks,” the ministry noted.

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