Net direct tax collections surge 17.7% YoY to Rs 19.58L cr in FY24

India's net direct tax collections surged 17.7% year-on-year to ₹19.58 lakh crore in the fiscal year ended March 2024, surpassing the revised estimates, official data released Sunday showed.

Net direct taxes in 2023-24 exceeded the budget estimates by₹ 1.35 lakh crore (7.40%) and the revised estimates by ₹13,000 crore, it showed. Higher direct tax collections will give the Centre headroom to meet its fiscal deficit target for FY24.

The Centre had budgeted ₹18.23 lakh crore as net direct tax revenue for 2023-24, which was later revised upwards to ₹19.45 lakh crore.

The Centre lowered its fiscal deficit target for FY24 to 5.8% from 5.9% projected earlier.

As the Indian economy wades through general election, continued growth in direct tax collections signifies macroeconomic buoyancy, which is reassuring from the standpoint of continuity of fiscal discipline," said Sumit Singhania, partner, Deloitte India. "This ought to allow the incoming administration to hit the policy reforms road running, keeping the goal of improving taxpayers services at the core of tax reforms agenda," he added.

Both corporate and personal income tax witnessed a healthy double-digit growth, the data showed. Net corporate tax collections stood at ₹9.11 lakh crore, up 10.26% from ₹8.26 lakh crore in FY23.

Net personal income tax collections were at ₹10.44 lakh crore, up 25.23% over FY23 collection of ₹8.33 lakh crore.

Gross direct tax collections (provisional) for 2023-24 stood at ₹23.37 lakh crore, a growth of 18.48% over FY23. The Centre issued refunds worth ₹3.79 lakh crore in 2023-24.

Indirect tax collections have already exceeded the revised estimates, according to a communication by Central Board of Indirect Taxes and Customs chairman Sanjay Kumar Agarwal to field officials last month.