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After a sharp reduction in the GST, direct tax collections show a growth of 31%

Direct tax collection between April 1 and November 10: In a sign of an economic recovery, gross direct tax collections (corporate and personal income tax revenue) jumped 30.69% to Rs 10.54 lakh crore so far over the last month. current year, according to the latest official data. Personal income tax revenue (including securities transaction tax) jumped 41%, while corporation tax revenue rose 22%.

Tax collection is an indicator of economic activity in any country. Corporate and personal income tax offsets direct taxes. On the indirect tax front, GST revenue rose by 16.6% to around Rs 1.52 lakh crore in October, making it the second highest collection on record.

Gokul Chaudhri, Partner at Deloitte India, said: “Strong tax collection bodes well for public finances and shows that measures to stimulate the economy and investment are delivering results. The strong revenue collection comes after tax reforms such as the GST and competitive corporate tax rates. »

The direct tax collection, net of refunds, stands at Rs 8.71 lakh crore, 25.71% higher than the net collections for the corresponding period last year. This recovery represents 61.31% of the total direct tax budget estimates for fiscal year 2022-23.

“Direct tax collections up to November 10, 2022 show that the gross collections are Rs 10.54 lakh crore, 30.69% higher than the gross collections for the corresponding period last year. the finance ministry said in a statement on Friday.

After adjusting for refunds, the net growth of Corporate Tax (IRS) collections was 24.51% and that of Personal Income Tax (PIT) was 28.06%. % (IPP only) and 27% (IPP including corporate action tax). .

The budget had estimated direct tax collection at Rs 14.20 lakh crore this financial year, higher than the Rs 14.10 lakh crore collected in the last financial year (2021-22).

Meanwhile, on the indirect tax front, GST revenue rose by 16.6% to around Rs 1.52 lakh crore in October, making it the second highest collection on record. TPS collections had hit a record near Rs 1.68 lakh crore in April. In October last year, revenue stood at over Rs 1.30 lakh crore.

Gross GST collected in the month of October 2022 is Rs 1,51,718 Crore, of which Central GST is Rs 26,039 Crore, State GST is Rs 33,396 Crore, Integrated GST is Rs 81 Rs 778 crore (including Rs 37,297 crore levied on import of goods) and Cess is Rs 10,505 crore (including Rs 825 crore levied on import of goods), which is the second highest to date, according to an official statement.

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