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Tag: Direct tax

  • India’s Net Direct Tax Collections Up By 18.35% To Almost Rs 11.26 Lakh Crore In April-Oct | Economy News

    New Delhi: India’s net direct tax collection for the financial year 2024-25 has seen a significant surge, with an increase of 18.35  per cent to almost Rs 11.26 lakh crore year on year, as of 10 October, the data from the Central Board of Direct Taxes (CBDT) shows.

    The gross collection of direct tax grew 22.30 per cent to Rs 13.57 lakh crore year on year, as of 10 October, the data shows. The refund amounting to Rs 2.31 lakh crore released during the period. The refund amount saw a growth of 46 per cent.

    The data indicates that the key contributor in the collections is a major uptick in the Securities Transaction Tax (STT), which almost doubled to Rs 30,630 crore from Rs 16,373 crore in 2023 during this period.

    The collections STT indicates the increased investor exposure in the equity markets. Securities Transaction Tax is a tax payable in India on the value of securities transacted through a recognized stock exchange.

    Going further, the data indicates that tax collections from the corporate tax also increased significantly reaching at 6.11 crore, in the FY 2024-25 compared to last years’ Rs 5.11 crore. As per the data, gross personal income tax collections rose to Rs 7.13 lakh crore from Rs 5.79 lakh crore, while the net collection stood at  5.98 lakh crores.

    As per the figures released in September, the direct tax net collection for the financial year 2024-25 has seen a significant surge, with an increase of 21.48 per cent. Direct tax, a type of tax imposed directly on individuals and entities based on their income or wealth, includes categories such as corporate tax, income tax, and securities tax. Overall, the direct tax collections for FY 2024-25 showed a positive growth trajectory across various tax categories. 

  • Supreme Court Disposes of 573 Direct Tax Cases After Revised Monetary Limit For Filing Appeals; Nearly 4,300 Tax Disputes To Be Withdrawn | Personal Finance News

    New Delhi: The Supreme Court has disposed of 573 direct tax cases where the tax effect is less than Rs 5 crore, following the revised monetary limit for filing appeals, the Ministry of Finance said in a statement on Tuesday.

    This move aligns with the government’s efforts to reduce tax litigation and promote the Ease of Doing Business.The Union Budget 2024-25 provided for an enhanced monetary limit for filing appeals related to Direct Taxes, Excise, and Service Tax in the Tax Tribunals, High Courts, and Supreme Court. 

    The limits were increased to Rs 60 lakh, Rs 2 crore, and Rs 5 crore, respectively. Following the Budget announcement, the CBDT and CBIC issued the necessary orders to raise the monetary limit for filing appeals in their respective domains.

    “As a result, it is expected that the number of cases pending before various appellate forums will decrease, reducing tax litigation,” the Finance Ministry stated.In line with the Union Budget 2024-25 announcements, the monetary thresholds for filing tax dispute appeals by the department were enhanced: for the Income Tax Appellate Tribunal (ITAT), it was raised from Rs 50 lakh to Rs 60 lakh; for High Courts, it was increased from Rs 1 crore to Rs2 crore; and for the Supreme Court, from Rs 2 crore to Rs 5 crore.

    Due to these revised limits, it is estimated that approximately 4,300 cases will be withdrawn from various judicial forums over time, the Finance Ministry said. Adding further, the ministry stated that steps have been taken to deploy more officers dedicated to hearing and deciding income tax appeals, particularly those involving substantial tax amounts.

    “These initiatives reflect the government’s commitment to improving the ‘Ease of Living’ and ‘Ease of Doing Business’ across the country by reducing pending litigation,” it added. 

  • Direct tax assortment soars 48 according to cent in FY22, advance tax fee up 41 according to cent

    By way of PTI

    NEW DELHI: India’s assortment from tax on private and company source of revenue jumped over 48 according to cent within the present fiscal after a 41 according to cent surge upfront tax bills, mirroring sustained financial restoration in a 12 months that witnessed two waves of coronavirus infections.

    Internet collections of direct taxes till March 16, 2022, within the fiscal 12 months that began on April 1, 2021, stood at Rs 13.63 lakh crore in comparison to Rs 9.18 lakh crore in the similar length a 12 months again, an professional observation stated.

    The web collections in direct taxes, which is made up of source of revenue tax on person source of revenue, company tax on earnings of businesses, belongings tax, inheritance tax and present tax, within the present fiscal is 35 according to cent upper than the choice of Rs 9.56 lakh crore within the pre-pandemic 12 months of 2019-20 (April 2019 to March 2020).

    Advance tax collections, the fourth installment of which used to be due on March 15, rose to Rs 6.62 lakh crore, up 40.75 according to cent, the observation stated, including refunds aggregating to Rs 1.87 lakh crore had been issued within the present fiscal.

    Virtually 53 according to cent of all direct tax assortment used to be from company tax, whilst 47 according to cent got here from private source of revenue tax, together with securities transaction tax (STT) on stocks.

    The direct tax collections exceeded the budgeted Rs 11.08 lakh crore ahead of the beginning of the fiscal and Rs 12.50 lakh crore revised estimates in Finance Minister Nirmala Sitharaman’s Price range for 2022-23 offered on February 1.

    The unfold of the pandemic and the following restrictions had impacted industry actions in 2020-21.

    In opposition to the top of that fiscal, the economic system had began to recuperate from the have an effect on however used to be hit once more by means of a 2nd wave in April-Might 2021 and a newer 3rd wave.

    The speedy containment of Omicron, vaccination and declines in new infections helped the restoration.

    “The figures of direct tax collections for the monetary 12 months 2021-22, as on March 16, 2022 display that web collections are at Rs 13,63,038.3 crore in comparison to Rs 9,18,430.5 crore over the corresponding length of the previous monetary 12 months i.e FY 2020-21, representing an build up of 48.41 according to cent,” the observation.

    The web assortment within the present fiscal registered a enlargement of 42.50 according to cent over the corresponding length of FY 2019-20 when the web assortment used to be Rs 9,56,550.3 crore, and a enlargement of 34.96 according to cent over the similar length of FY 2018-19 when the web assortment used to be Rs 10,09,982.9 crore.

    The web direct tax collections come with company source of revenue tax (CIT) of Rs 7,19,035.0 crore (web of refund) and private source of revenue tax (PIT) together with STT of Rs 6,40,588.3 crore (web of refund).

    The gross choice of direct taxes (ahead of adjusting for refunds) for the FY 2021-22 (as on March 16, 2022) stood at Rs 15,50,364.2 crore in comparison to Rs 11,20,638.6 crore within the corresponding length of the previous monetary 12 months.

    The gross assortment for the FY 2019-20 used to be Rs 11,34,706.3 crore and that for FY 2018-19 used to be Rs 11,68,048.7 crore. The gross assortment contains CIT of Rs 8,36,838.2 crore and PIT of Rs 7,10,056.8 crore.

    “Minor head sensible assortment (as on March 16, 2022), contains advance tax of Rs 6,62,896.3 crore, tax deducted at supply of Rs 6,86,798.7 crore, self-assessment tax of Rs 1,34,391.1 crore; common evaluation tax of Rs 55,249.5 crore; dividend distribution tax of Rs 7,486.6 crore and tax beneath different minor heads of Rs 3,542.1 crore,” the observation stated.

    The cumulative advance tax collections for the present 2021-22 fiscal stood at Rs 6,62,896.3 crore as on March 16, 2022, as in comparison to Rs 4,70,984.4 crore for the corresponding length of the right away previous monetary 12 months.

    This used to be 50.5 according to cent upper than Rs 4,40,281.4 crore advance tax assortment in FY 2019-20 and 31 according to cent greater than Rs 5,06,714.2 crore mopped up in 2018-19.

    The development tax determine of Rs 6,62,896.3 crore contains CIT of Rs 4,84,451.8 crore and PIT of Rs 1,78,441.1 crore. “This quantity is predicted to extend as additional knowledge is awaited from banks,” the observation added.

    Refunds amounting to Rs 1,87,325.9 crore have additionally been issued in FY 2021-22 to this point.