In a welcome development for the government, the country’s direct tax collections have witnessed a major growth of 15.8 percent. For the period between April and September 2017, the direct tax collections have grown to Rs 3.86 lakh crore. One of the major reasons for this huge jump is the significant growth in the collections of advance tax. The information was provided today by the Central Board of Direct Taxes (CBDT). The overall budget estimate for direct tax collections for 2017-18 is Rs 9.8 lakh crore. So, as per the April-September data, around 39.4 percent of the target has already been achieved. The figure of 3.86 lakh crore is the net direct tax collections. The gross direct tax collections for April-September were 4.66 lakh crore. Refunds worth Rs 79,660 crore were given out during April-September and this amount was deducted from the gross collections to arrive at the net direct tax collections.
The 15.8 percent growth in net direct tax collections is in comparison to the figure in the year ago period. Growth has also been witnessed in Corporate Income Tax (CIT) and Personal Income Tax (PIT). The former has shown 8.1 percent growth whereas the latter has grown by 30.1 percent. Experts said that the increased tax collections bode well for the country’s economy, as it shows the rising income level of people and corporates. Some experts also said that it could be a result of demonetization and the various rules introduced by the government to limit cash transactions and unearth black money.