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Net Direct Tax Collections Exceed 2023-24 Target


Why is it in the news?

  • India’s net direct tax collections for FY 2023-24 grew by 17.7% to reach 58 lakh crore, surpassing the Budget Estimates (BE) and Revised Estimates (RE).

 

More about the news

  • BE for direct tax revenue in FY 2023-24 was set at ₹23 lakh crore, later revised to ₹19.45 lakh crore.
  • The provisional net direct tax collections exceeded the BE by 7.40% and the RE by 0.67%.

Gross Direct Tax Collections:

  • The provisional gross direct tax collections for FY 2023-24 stand at ₹37 lakh crore, showing a growth of 18.48% over the previous fiscal year.

Corporate Tax Collections:

  • Gross Corporate Tax collection (provisional) for FY 2023-24 is ₹32 lakh crore, with a growth of 13.06% over the preceding year.
  • Net Corporate Tax collection (provisional) for FY 2023-24 is ₹11 lakh crore, showing a growth of 10.26%.

Personal Income Tax Collections:

  • Gross Personal Income Tax collection (including STT) for FY 2023-24 is ₹01 lakh crore, with a growth of 24.26%.
  • Net Personal Income Tax collection (including STT) for FY 2023-24 is ₹44 lakh crore, showing a growth of 25.23%.
  • Refunds of ₹79 lakh crore were issued in FY 2023-24, indicating an increase of 22.74% over the previous fiscal year.

 

Direct Taxes

·       Direct taxes are levied based on the principle of the individual’s ability to pay, aiming to redistribute wealth within the country.

 

Types of Direct Taxes

·       Estate Tax (Inheritance Tax): Imposed on the value of the estate left by an individual after death.

·     Income Tax: Charged on the annual income of individuals or businesses earned within a financial year.

·    Wealth Tax: Paid yearly based on property ownership and the market value of assets.

·    Corporate Tax: Levied on the profits or net income of corporations. Paid on the company’s taxable income, which includes revenue after deductions like cost of goods sold, administrative expenses, depreciation, etc.

·    Capital Gains Tax: Imposed on income earned from the sale of assets or investments. Assets such as farms, bonds, shares, businesses, art, and homes fall under capital assets.

 

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