Direct tax kitty increases 22%, cushion for government to spend more

NEW DELHI: Gross direct tax collections have increased 22.2% to Rs 5,15,986 crore during the fiscal year up to June 17, providing cushion to the Centre to take on higher spending. Latest data released by the finance ministry estimated a 27.3% growth in advance tax collections to a little under Rs 1.5 lakh crore, indicating that economic activity remains strong as a bulk of the receipts are from the corporate sector.
Companies and certain categories of individuals are required to pay advance tax in four instalments with the first one due on June 15.
“Refunds amounting to Rs 53,322 crore have also been issued in the FY2024-25 till June 17, 2024, which are 33.7% higher than refunds issued during the same period in the preceding year,” the finance ministry said in a statement. As a result, provisional direct tax collections on a net basis went up 21% to over Rs 4.6 lakh crore.