Robust Growth in Direct Tax Collections

New Delhi: Wth the robust collection of tax, the government on Tuesday said that the net direct tax mop-up have increased by around 161 per cent from Rs 6.38 lakh crore in FY 2013-14 to Rs 16.63 lakh crore in FY 2022-23, while gross direct tax collections of Rs 19.72 lakh crore in FY 2022-23 have registered an increase of over 173 per cent compared to Rs 7.21 lakh crore in FY 2013-14, according to the finance ministry.

As per the consolidated time-series data on direct taxes that was released by the Central Board of Direct Taxes (CBDT) under the ministry, net direct tax collections meanwhile jumped up by 160.52 per cent to Rs 16,63,686 crore in FY23 from Rs 6,38,596 crore in FY14. "Besides, the gross direct tax collections shot up by a similar 173.31 per cent to Rs 19,72,248 crore in FY23 from Rs 7,21,604 crore in FY14," the CBDT said.

"Tax deducted at source remained the largest component of direct taxes at Rs 8.17 lakh crore in FY23, advance tax amounted to Rs 7.27 lakh. Significantly, tax paid through self-assessment was the third largest contributor to the direct tax kitty with payments of a little less than Rs 1.3 lakh crore last fiscal," the CBDT added.

However, the official data has also showed that the income tax department is spending more on collection of direct taxes even as the number of taxpayers has increased substantially, indicating the role of greater interface with technology and higher compliance. "The direct tax to GDP ratio has increased from 5.62 per cent in FY 2013-14 to 6.11 per cent in FY 2022-23," the statement said, adding that the cost of collection has decreased from 0.57 per cent of total collection in the FY 2013-14 to 0.51 per cent of total collection in the FY 2022-23," it showed.

Besides, the data further showed that the total number of ITRs filed in FY 2022-23 stands at 7.78 crore showing an increase of 104.91 per cent as compared to total number of ITRs of 3.80 crore filed in FY 2013-14. "The number of income tax payers rose to 9.37 crore in FY 23 from 5.26 crore in FY14. A ‘taxpayer’ is a person who either has filed a return of income for the relevant assessment year (AY) or in whose case tax has been deducted at source in the relevant financial year but the taxpayer has not filed the return of income,” the CBDT said.