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- India’s net Direct tax collections in 2022-23 have risen to ?7.45 lakh crore, more than half this year’s Budget targets.
More about the news
- Based on provisional data, net personal income tax collections grew 17.35%.
- It is rising faster than corporate income tax collections that were up 16.29% net of refunds.
- Securities Transaction Tax (STT) collections combined with personal income tax receipts, grew at a more moderate 16.25%.
- Underlining that Direct Tax collections continue to register steady growth, the ministry said that tax refunds have jumped 81% over the preceding year to touch ?1.53 lakh crore.
What is Direct Tax?
- Direct tax is paid by a person or an organisation responsible for paying tax directly to the entity that imposed it.
- An individual taxpayer, for example, pays direct taxes to the government for various purposes, including income tax, real property tax, personal property tax, or taxes on assets.
- Direct taxes are based on an economic principle that states that those who have more resources or earn a higher income should bear a greater tax burden.
What is Tax Buoyancy?
What is Tax Elasticity?
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Factors responsible in rise in tax collection
- Stable Government policies:
- It is the result of the stable policies of the Government focusing on simplification and streamlining of processes and plugging of tax leakage through effective use of technology.
- Effective filing of income tax returns:
- There has been a remarkable increase in the speed of processing of income tax returns filed during the current financial year.
- The IT department has successfully used technology to reach out to assesses in non-intrusive ways; for instance, sending email reminding them to file return if not already.
- Economic recovery:
- GST collection increased 28 percent year-on-year to Rs 1.43 trillion on better compliance, revival in consumption, and elevated inflation.
- The level of economic recovery can also be seen from the value of e-way bills generated which has improved from 16.9 lakh crore in 2021 to 25.7 lakh crore in 2022.
- Corporate tax:
- Corporate tax as of now is growing about 25-26 percent.
- Efficient assessment of incomes:
- Intensive and extensive use of data analytics and artificial intelligence has prompted assessments to report people’s income accurately.
Indirect Taxes – Goods and Service Tax (GST)
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Source: TH
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