Gross Direct Tax Revenue Up 47% In Fiscal Year-To-Date: Finance Ministry

The government of India's direct tax revenue has witnessed robust growth so far this fiscal.

Gross direct tax collection, including corporation tax and personal income tax revenue before adjusting for refunds, has increased 47% as on Sept. 22 over a year earlier, showed data released by the Finance Ministry. It's 16.75% higher than the same period in FY20

For the April to Sept. 22 period:

• FY21: Rs 6,45,679 crore

• FY20: Rs 4,39,242 crore

• FY19: Rs 5,53,063 crore

For FY22, corporation tax collected so far is Rs 3,58,806 crore and personal income tax, including security transaction tax is at Rs 2,86,873 crore. Comparable period figures for previous years were not shared in the statement.

Net direct tax collection, after adjusting for refunds, has witnessed an increase of over 74% this fiscal year-to-date over same period last fiscal and up 27% over FY20.

For the April to Sept. 22 period:

• FY21: Rs 5,70,568 crore

• FY20: Rs 3,27,174 crore

• FY19: Rs 4,48,976 crore

Refunds amounting to Rs 75,111 crore have been issued in FY22 so far, the statement said.

This is an enthusing signal of the waning impact of the pandemic on Indian macros, said Aditi Nayar, chief economist at ICRA, in an emailed comment to the media. She also attributed it to the formalisation of the Indian economy and said it bodes well for the second half of the fiscal year.

"The healthy expansion in the Government of India's gross tax revenues in H1 FY22 relative to the pre-Covid level augurs that the upturn will sustain in the second half as well, even though a normalising base may dampen the pace of growth going forward."