The Government of India collected Rs 6.53 lakh crore as gross direct tax up to August 10, up 15.73% than the gross collections for the corresponding period of last year, the Ministry of Finance said. The Centre also issued refunds amounting to Rs. 0.69 lakh crore during April 1, 2023 to August 10, 2023, which were 3.73% higher than refunds issued during the same period in the preceding year.
Direct Tax collection, net of refunds, stands at Rs 5.84 lakh crore, which is 17.33% higher than the net collections for the corresponding period of last year. This collection is 32.03 percent of the total Budget Estimates of Direct Taxes for FY 2023-24, the ministry said in a statement.
India collects direct taxes mainly through corporate and personal income tax. Even with the GST regime, the government exchequer makes over half of its revenue through direct taxes. Both taxes are collected by the Central Board of Direct Taxes (CBDT), a department under the Ministry of Finance. Direct tax collection in India is carried out through a self-assessment system, where individuals and companies are required to self-assess their tax liability and make the payment accordingly.
