NE Watch Desk
In 10 years of Prime Minister Narendra
Modi, the Central Government’s collections from personal income and corporate
tax are projected to grow to over Rs 19 trillion by March 2024. It will facilitate
more space and flexibility to come out with people-friendly tax measures.
The growing income of individuals led to
increased net direct tax collections from Rs 6.38 trillion in FY 2013-14 to Rs
16.61 trillion in FY 2022-23 after adjusting for refunds.
The collections from net direct taxes, including
personal income tax and corporate tax, have jumped by 20 per cent so far in the
current financial year. The used-up fund is expected to be close to Rs 19
trillion in the fiscal ending on March 31 next year, at this speed.
The Centre has been making efforts, over
the years, for simpler tax regime powered by lower rates and fewer exemptions. The
government, in 2019, introduced a lower rate of tax for corporate, who forego
exemptions. Another scheme on similar line was launched for individuals in
April 2020.
Individuals got a lucrative income tax
regime in the 2023-24 Budget. The perks included elevating basic exemption
limit to Rs 3 lakh, including standard deduction of Rs 50,000 and rationalising
the tax slabs. In the income tax return form, it has been made the default tax
regime.
The number of ITRs filed by individual
taxpayers escalated from 3.36 crore in 2013-14 to 6.37 crore in 2021-22
registering an overall increase of 90 per cent.
Returns amounting to Rs 7.41 crore have
been filed till October 26, 2023. It includes Rs 53 lakh by first-time filers.
All these were driven by multiple reform measures taken by the Income Tax
Department.
Pushed by strong economic performance, the
growing trend of direct tax collections and GST mop-up is expected to continue in
2024.
The monthly collection from Goods and
Services Tax or GST has reached a high of Rs 1.87 trillion in April 2023. The
average gross monthly collection from GST stands at Rs 1.66 trillion this
financial year, which is 11 per cent more than the previous year.
The GST Council, including finance
ministers of Centre and States, elucidated on levy of 28 per cent tax on online
gaming. Additionally, it decided to make it mandatory for all overseas online
gaming companies to register with GST authorities.
