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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