CBDT update – Growth in Direct Tax collections of 10.8%

The Central board of direct taxes have recently released the update on Direct tax collections .The figures of direct tax collections from April 2016 to Jan 2017 show that collections (net of refund) are Rs 5.82 Lakhs crore which is 10.79% more as compared to the net collections for the same period last year. This collection is 68.7% of the total budgeted collections estimated by the central board of direct taxes for financial year 2016-17.

Let’s take a look at the trend in growth rate of direct tax collections for the Ist, IInd and IIIrd quarter as compared with the same period last year.

Month Growth in Direct tax collections  as compared to same period  last year
Up to June 2016(Ist Qtr.) 24.79%
Up to Sep 2016(IInd Qtr.) 8.95%
Up to Dec 2016 (IIIrd Qtr.) 12.01%

 

We can see the growth rate in first quarter was very huge i.e. 24.79%.The major reason of this increase was that it included the Advance tax instalment of individuals payable in June 2016 which was not there in June 2015. Advance tax instalment is now payable in four instalments in June, sep, dec and March for both corporates and individuals. In F.Y 2015-16, advance tax was payable in Sep, dec and March only for individuals.

The growth rate in IInd and IIIrd quarter has been 8.95% and 12.01%.Even during the demonetisation period of Nov and Dec, 2017, the direct tax collections have witnessed a growth rate of 12.01% up to Dec 2016.Thus we can see that the Direct Tax collections up to Jan, 17 show a consistent growth trend.

The direct tax collections can be broadly divided into collections from corporate Income Tax   and personal income tax. If we consider only the gross revenue collections, the growth rate up to Jan 17 under Corporate Income tax is 11.7% and under Personal Income Tax is 21%.

However after adjusting for refunds, the net growth in Corporate Income tax collections is 2.9% while that in Personal Income tax is 23.1%. Refunds amounting to Rs 1.41 lakhs crore have been issued during April 2016- January 2017, which is 41.01% higher than the refunds issued during the corresponding period last year.

As per CBDT release dated 10th February 2017.

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