As per CBDT, a taxpayer is a person who has filed a return of income for the relevant assessment year (AY) or in which case tax has been deducted at source during the relevant financial year but the taxpayer has not filed the return.
The direct tax-to-GDP ratio, which reflects the share of taxes in total output generated in the country, touched a 15-year high of 6.11% in fiscal 2022-23, according to time-series data announced by the power plant.
The Department of Direct Taxes (CBDT) under the Ministry of Finance showed this on Tuesday. This comes with an increase in the number of Indian taxpayers to 7.4 crore in FY23, up 6.3% over FY22, even as fiscal momentum – the pace of taxes compared to the nominal growth rate of the economy – decreased to 1.18. in 2022-23, compared with 2.52 in 2021-22 and 1.29 in the pre-Covid year 2018-19.
Tax revenue expenditure – which represents the share of spending on tax collection in total tax revenue – fell slightly to 0.51% in FY23, the lowest level since 2000-01, but increased in absolute terms. to Rs 8,452 crore, the highest since 2000-01, the year for which data was last available, according to CBDT data.
Fiscal momentum stood at (-)1.21 in 2019-20 and it has not been calculated for FY 2020-21 due to fall in nominal GDP and tax revenue over the previous year. Tax momentum improved to 2.52 in 2021-22 due to low base effect. Now, the tax dynamic has declined to 1.18 in 2022-23, although tax growth was recorded at 17.79% in 2022-23, higher than the nominal GDP growth of 15.11 %.
A tax dynamic greater than 1 reflects a faster rate of tax growth relative to the country’s national income.
Net direct tax collections, which reflect collections after tax refunds, “rose 160.52% to Rs 16.63 billion in FY 2022-23, compared to Rs 6.39 billion in 2013-14,” CBDT said in a report. declare. He said total direct tax revenue stood at Rs 19.7 lakh crore in FY 2022-23, up 173.3 per cent from Rs 7.21 lakh crore in FY 2013-14. On a year-over-year basis, net direct tax revenue increased 17.8%, while total direct tax revenue increased 20.5%.
While the number of income tax filers increased to 7.4 crore in the financial year 2022-23, of which 6.97 crore were individuals, there is no corresponding data on taxpayers. In the previous financial year 2021-22, while taxpayers stood at 6.96 crore (with 6.55 crore individuals), total taxpayers stood at 9.37 crore – a difference of 2.41 crore crore – this shows that a significant number of taxpayers are taxed through as TDS but do not file income tax returns.
As per CBDT, a taxpayer is a person who has filed a return of income for the relevant assessment year (AY) or in which case tax has been deducted at source during the relevant financial year but the taxpayer has not filed the return.
Of the government’s total tax revenue, direct tax revenue accounted for 54.62 per cent in the financial year 2022-23, the highest in four years. The share of direct taxes in total taxes stood at 52.27% in FY22, 46.84% in FY21, 52.42% in FY20 and 54.83% in FY19 .A higher ratio of direct taxes to indirect taxes is considered progressive because indirect taxes hurt the poor more than direct taxes.
Among states and union territories, Maharashtra accounted for 36.4 per cent (Rs 6.05 lakh crore) of the country’s total direct tax revenue in the financial year 2022-23, followed by Delhi with 13, 3% (Rs 2.22 lakh crore), from Karnataka. at 12.5% (Rs 2.08 lakh crore) and Tamil Nadu at 6.4% (Rs 1.07 lakh crore). Collectively, these four states accounted for 68.6% of total direct tax revenue in FY23.
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