Tax Triumph: India's Direct Tax Collection Surges Amid Corporate Gains

India's net direct tax collection increased by 8% to over Rs 17.04 lakh crore until December 17, with growth driven by corporate taxes and slower refunds. Deloitte India's Rohinton Sidhwa attributes the rise to strong corporate earnings, though individual tax collections fell due to previous rate cuts.

India's net direct tax collection has grown by 8% to exceed Rs 17.04 lakh crore this fiscal year until December 17, according to data released by the income tax department. The increase is attributed to a slower issuance of refunds and higher advance taxes paid by corporates.

Corporate tax collections have surged by 10.54%, totaling over Rs 8.17 lakh crore, while non-corporate taxes, covering individuals and firms, rose by 6.37% to Rs 8.47 lakh crore. Meanwhile, the Securities Transaction Tax (STT) has modestly increased to Rs 40,195 crore.

Deloitte India Partner Rohinton Sidhwa noted that the corporate advance tax growth indicates strong earnings, although there was a de-growth in non-corporate advance taxes. The drop in refund issuance is being attributed to stringent screening processes aimed at curbing fraudulent claims, which could lead to increased litigation.

(With inputs from agencies.)