Gross Direct Tax Collection registered a growth of 30% in 2022-23 (Economy): The overall direct tax collection for FY 2022–23 is Rs. 8,36,225 crore, up from Rs. 6,42,287 crore during the same period of the previous financial year, i.e. 2021–22. This represents a gain of 30% above 2021–22’s collections.
Gross Direct Tax Collection registered a growth of 30% in 2022-23: Key Points
- According to data released by the finance ministry, 8.36 lakh crore is the total amount collected, of which 4.36 lakh crore is from corporate income tax and 3.98 lakh crore is from personal income tax (PIT), which includes securities transaction tax. Net direct tax collections grow by 30% by September 17 of the current fiscal year.
- In a statement, the Central Board of Direct Taxes stated that the government’s solid policies, which emphasize procedural simplicity and streamlining as well as the effective use of technology to plug tax leaks, have resulted in steady growth in direct tax collections, which is a strong indication of the recovery of economic activity following the pandemic.
- A nearly 468% increase in the number of refunds paid in the current financial year compared to the same period the previous year was attributed to the processing of over 93% of the duly verified Income-Tax Returns (ITRs) till September 17.
- The amount and number of refunds issued in comparison to the last year is an eye-catching statistic. It is because of the improved automated return processing capability engine now being operational. This is good news for taxpayers.
- In an effort to decriminalize offenses, the CBDT has authorized compounding in cases where the petitioner has been sentenced to up to two years in prison under the Income-Tax Act. According to the tax agency, offenses punishable under Section 276 of the Act are now compoundable, which includes the removal, concealment, transfer, or delivery of property to another person in order to evade tax recovery. Compounding permits a person to admit responsibility for his crime and pay specific penalties in order to avoid prosecution.
What is the Central Board of Direct Taxes?
- The Central Board of Direct Taxes is a statutory body established by the Central Board of Revenue Act of 1963.
- Ex-officio Board members also serve as a Division of the Ministry of Finance dealing with direct tax levy and collection.
- The Department of Revenue under the Ministry of Finance of the Government of India houses the Central Board of Direct Taxes (CBDT).
- It provides critical inputs for direct tax policy and planning in India, and it is also in charge of enforcing direct tax rules through the Income Tax Department.
- It is the official Financial Action Task Force unit of India.
|Current Affairs April 2022|