Direct Tax Collections Surge to 80% of Revised Estimates by February 10th

Until February 10 of the current financial year (FY24), direct tax collections have increased by 20.25%, surpassing the 17.24% growth estimated for the entire year. The total direct tax receipts amount to Rs 15.60 trillion, which is 80.23% of the Rs 19.45 trillion projected for FY24, according to data from the finance ministry.

To reach the target set in the revised estimates for the year, the government needs to collect Rs 3.85 trillion in approximately 50 days. Given that March 15 marks the deadline for advance payments and arrears, it appears likely that the target will be easily achieved.

Both corporation tax and personal income tax showed growth rates higher than the expected targets set in the revised estimates (RE). Corporation tax increased by 13.75% until February 10, surpassing the year's target of 11.73%. Similarly, personal income tax saw a rise of 27.17% by February 10, exceeding the projected rate of 22.69%. Excluding securities transaction tax (STT), personal income tax grew by 26.91% during the same period.

Up until Saturday, the government issued refunds totaling Rs 2.77 trillion. When these refunds are added, direct tax collections increased by 17.3% to reach Rs 18.38 trillion by February 10. Before factoring in refunds, corporation tax grew by 9.16%, while personal income tax rose by 25.93%. Excluding STT, personal income tax showed a growth rate of 25.67%.

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