The government data released on Wednesday showed that the country’s gross direct tax collection rose by 24.58% to Rs 14.71 lakh crore till January 10th this fiscal, driven by an increase in personal income tax collection. The net direct tax collection, after adjusting for refunds, stood at Rs 12.31 lakh crore, which is 19.55% higher than the net collections for the same period last year.

This net collection is 86.68% of the total budget estimates of direct taxes for the current fiscal. The budget had estimated direct tax collection at Rs 14.20 lakh crore this fiscal. On a gross basis, collections from corporate income tax (CIT) grew by 19.72%, while that for personal income tax (PIT) increased by 30.46%.

The Central Board of Direct Taxes (CBDT) said in a statement, “The provisional figures of direct tax collections up to 10th January, 2023 continue to register steady growth. Direct tax collections up to 10th January, 2023 show that gross collections are at Rs 14.71 lakh crore which is 24.58% higher than the gross collections for the corresponding period of last year.”

After adjusting for refunds, the net growth in CIT collections is 18.33% and that in PIT (including securities transaction tax) is 20.97%. The steady growth in direct tax collection is a positive indication for the government’s revenue collection and a sign of economic recovery post the pandemic. The government’s efforts to increase compliance and bring more taxpayers into the tax net seems to be paying off as well.