The Centre’s advance direct tax receipts for the fourth quarter of the current fiscal increased by 6% compared to the previous quarter, reaching Rs 2.85 trillion by March 15.
This growth in advance tax collections indicates ongoing economic activity. Despite higher refunds during this period, direct tax receipts post-refund reached Rs 18.91 trillion, close to the full-year revised estimate of Rs 19.45 trillion for FY24.
The Centre aims to keep the fiscal deficit within the revised estimate of 5.8% of GDP in FY24 with the help of additional collections after devolution, even though the nominal GDP size is expected to be slightly lower than initially projected. The government raised the direct tax receipts target in the recent budget, mainly due to increased personal income tax receipts.
Refunds processed until March 15 were 9% higher than the previous fiscal year, indicating faster processing. The rise in corporate profitability contributed to the buoyancy in advance tax collections each quarter. Corporation tax collections stood at 99.2% of the full-year revised estimate, while income tax receipts were at 95.4% of the target for FY24.
By March 15, TDS, TCS, securities transaction tax, and equalisation levy receipts for the current fiscal year had reached significant amounts.
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