The Centre’s direct tax collections (post-refunds) grew by a robust 33% on year till August 24 of the current financial year, with both personal income tax (PIT) and corporate income tax (CIT) performing much better than anticipated, thanks to higher compliance and a favourable base effect, Central Board of Direct Taxes (CBDT) chairman Nitin Gupta said. Despite higher refunds, direct tax collections stood at about Rs 4.8 trillion as on August 24 of the current fiscal. During the period, refunds rose by a sharp 78% to about Rs 93,000 crore, compared to Rs 52,000 crore in the year-ago period, Gupta said. The Centre’s direct tax collections are expected to exceed the FY23 Budget target of Rs 14.2 trillion by a substantial amount, as the target for the year is at par with actual receipts of last fiscal.
