Direct Tax Collection: There is good news for the central government. The government’s treasury is increasing through tax collection. For the current financial year 2022-23, the government has managed to meet only one-third of the income tax collection target for the four months between April and July. Income tax collection has also surpassed the target of corporate tax collection. It is believed that this is the result of the strictness of the Income Tax Department and the steps taken for compliance.
According to the data, the total direct collection, which includes corporate tax to personal income tax, has increased by 40 percent as compared to last year. Direct tax collection between April and July has been Rs 5 lakh crore, which is 35 percent of the target of 14.2 lakh crore for the whole year.
It is believed that the situation arising out of global tensions and stringent monetary policy due to excellent tax collection will help the government to deal with it in the current financial year, which will enable the government to spend more. At the same time, it will also help the government in dealing with the reduction in indirect tax. Because the government had reduced the excise duty on petrol and diesel to give relief to the common people, which affected the government’s exchequer.
The personal income tax collection has been Rs 2.67 lakh crore, which has been 52 percent more than the previous year. So the personal income tax collection has been Rs 45000 crore more than the corporate tax. Corporate tax collection has been Rs 2.22 lakh crore. This is when the Finance Ministry has not extended the date of filing income tax return beyond 31st July 2022. This is the first time in nine years that the date of filing income tax return has not been extended.
Self-assessment tax collection in personal income tax has increased by 275 per cent to Rs 43,500 crore. Officials believe that the collection has increased due to AIS (Annual Information Statement) using technology by the tax department. Because it contains the details of all the financial transactions of the taxpayers.