Gross Direct Tax Collections Increase by 30% in Fiscal Year (FY) 2022-23 Net Direct Tax Collections for the Fiscal Year 2022-23 have increased by 23%.
Advance tax revenues for the fiscal year 2022-23 were Rs. 2,95,308 crore as of September 17, 2022, representing a 17% increase.
Refunds totaling Rs. 1,35,556 crore were issued in the current fiscal year, an increase of 83% over the previous year.
Direct tax collections continue to grow at a robust pace, a clear indicator of the revival of economic activity post-pandemic, as also the result of the stable policies of the Government, focusing on simplification and streamlining of processes and plugging of tax leakage through effective use of technology.
The Direct Tax collections numbers for FY 2022-23, as of 17.09.2022, reveal that net collections are at Rs. 7,00,669 crore, compared to Rs. 5,68,147 crore in the equivalent time of the prior Financial Year, i.e. FY 2021-22, reflecting a 23% rise. Corporation Tax (CIT) at Rs. 3,68,484 crore and Personal Income Tax (PIT) including Securities Transaction Tax (STT) at Rs. 3,30,490 crore comprise the Net Direct Tax collection of Rs. 7,00,669 crore (net of rebate).
The gross collection of direct taxes (before correcting for refunds) for FY 2022-23 is Rs. 8,36,225 crore, compared to Rs. 6,42,287 crore in the equivalent period of the prior Financial Year, i.e. FY 2021-22, representing a 30% increase over FY 2021-22 collections.
The gross collection of Rs. 8,36,225 crore includes Rs. 4,36,020 crore for Corporation Tax (CIT) and Rs. 3,98,440 crore for Personal Income Tax (PIT) including Securities Transaction Tax (STT). Advance Tax of Rs. 2,95,308 crore; Tax Deducted at Source of Rs. 4,34,740 crore; Self-Assessment Tax of Rs. 77,164 crores; Regular Assessment Tax of Rs. 20,080 crores; and Tax under other minor headings of Rs. 8,933 crores are the minor head collections.
The cumulative Advance Tax collections for the first and second quarters of FY 2022-23 are Rs. 2,95,308 crore as of 17.09.2022, compared to Advance Tax collections of Rs. 2,52,077 crore for the same time of the immediately preceding Financial Year, indicating a 17% increase. The Advance Tax collection of Rs. 2,95,308 crore consists of Rs. 2,29,132 crore for Corporation Tax (CIT) and Rs. 66,176 crore for Personal Income Tax (PIT).
The processing pace of income tax returns filed during the current fiscal year has increased dramatically, with about 93% of officially certified ITRs processed by September 17, 2022. This has led to speedier refund processing, with nearly a 468% increase in refunds given in the current fiscal year. Refunds totaling Rs. 1,35,556 crore were issued in the fiscal year 2022-23 until September 17, 2012, compared to Rs. 74,140 crores issued in the preceding fiscal year 2021-22, representing an increase of more than 83%.