Direct Tax Collections Rise by 11% during April – June period: Indian Government
Direct tax collection has jumped by nearly 11 percent during April 1 to June 16 period, as per official statement released by Indian government. The government recorded direct tax collections at Rs 3.8 trillion during this period, marking a positive development.
As per a statement issued by the Ministry of Finance, tax collection from personal income taxes accounted for Rs 2.22 trillion while corporate taxes amounted to Rs 1.57 trillion. Advanced tax payments were higher by 15 percent during the period. Higher advance tax suggests that economy activity has remained strong during the period. This also suggests that Indian companies might report strong quarterly numbers for the first quarter. This information can improve investor sentiment and we can expect positive movement for stock markets tomorrow. NSE Nifty and BSE Sensex closed at all-time high on Friday.
The government had reported in April that direct tax collections jumped by 15.9 percent for year 2022-23. The total direct tax collection stood at Rs 16.16 trillion.
Keeping in mind the growth in Indian economy and better tax collections, the Indian government has set a target of Rs 18.2 trillion for year 2023-24. While economies in Europe and North America are expecting a recession this year, Indian economy is expected to grow at a strong pace. The growth in Indian economy is mainly driven by domestic consumption and rising purchasing power of Indian consumer base. The government has also planned major spending on infrastructure and this can improve chances of India attracting FDI in different sectors.