India collects record $238.78 billion direct tax in FY24 

India’s net direct tax collections in the financial year 2023-24 grew by 17.70% to reach ₹19.58 trillion ($238.78 billion) compared to ₹16.64 trillion ($202.93 billion) in the previous financial year, the ministry of finance said.

The net direct tax collections (provisional) for the past year even exceeds the Union budget estimates (BE) by ₹1.35 trillion ($16.46 billion) or 7.40%.

In India, direct taxes including tax on income, property, corporate activities, wealth assets, gifts, security transactions and capital gains levied on people are directly paid by an individual to the government without mediators.

The budget estimates for direct tax revenue in the Union budget for FY 2023- 24 were at ₹18.23 trillion ($222.56 billion). The figures were later revised and were estimated to be ₹19.45 trillion ($237.20 billion).

The government in its interim budget presented on 1 February this year had raised the target for direct tax collections in FY24 to ₹19.45 trillion or $237.20 billion.

The gross collection (provisional) of direct Taxes (before adjusting for refunds) for the FY 2023-24 stands at ₹23.37 trillion ($285 billion) showing a growth of 18.48% over the gross collection of ₹19.72 trillion ($240.49) billion in FY 2022-23.

The gross corporate tax collection (provisional) in FY 2023-24 reached ₹11.32 trillion ($138.05) billion with a growth of 13.06% over the gross corporate tax collection of ₹10 trillion ($121.95 billion) of the preceding year. The net corporate tax collection (provisional), on the other hand, showed a growth of 10.26% over the previous year, increasing from ₹8.26 trillion ($100.73 billion) to ₹9.11 trillion ($111.10). 

In personal income tax category, the gross net sum for FY 2023-24 reached to ₹12.01 trillion ($146.28 billion) and has shown a growth of 24.26% over the collection of ₹9.67 trillion ($118.05 billion) of the preceding year.

While in net terms, it grew to ₹10.44 trillion ($127.32 billion) with a growth rate of 25.23% over the collection of ₹8.33 trillion ($101.59 billion) of the preceding year.

The government had earlier issued tax direct refunds of ₹3.79 trillion ($46.22 billion) for FY 2023-24 showing an increase of 22.74% over the refunds of ₹3.09 trillion ($37.68 billion) issued in FY 2022-23.