In FY2013, the ratio of direct taxes to GDP reached a 15-year high of 6.11%

In FY2013, the ratio of direct taxes to GDP reached a 15-year high of 6.11%

The cost of collecting taxes decreased from 0.57 percent of total revenues in 2013–14 to 0.51 percent in 2022–2023 (Central Board of Direct Taxes, data provided).

A week before Finance Minister Nirmala Sitharaman's presentation of the interim budget for 2024–25 in Parliament on February 1st, the data on direct taxes is released.

The Central Board of Direct Taxes (CBDT) published statistics showing that India's direct taxes-to-GDP ratio is expected to close in on its peak of 6.3% in 2007-08 and hit a 15-year high of 6.1% in 2022–2023. has arrived.

The share of direct taxes to overall tax collections, which mostly consist of corporation tax and personal income tax, has returned to pre-pandemic levels, according to data that was made public late on January 23. Direct tax income fell to 54.62 percent of total tax revenue in 2022–23 from 52.27 percent in 2021–22 and 46.84 percent in 2020–21, the lowest percentage in fifteen years.

Moneycontrol estimates indicate that the direct tax-to-GDP ratio may increase to around 6.2% if the federal government fulfills its budget plans for 2023–2024. Economists predict that the government would, nonetheless, surpass its budgetary projections of Rs 9.01 lakh crore for personal income tax and Rs 9.23 lakh crore for corporate tax. According to a quick survey of ten analysts' predictions, the direct taxes-to-GDP ratio may hit a record-breaking 6.5 percent this year.

Additional conclusions drawn from the combined time series data of CBDT spanning from 2000-01 to 2022-23 are as follows:

In 2022–23, the government collected 8,452 crore in direct taxes, an increase from Rs 7,479 crore in 2021–2022. Tax collection efficiency increased, while the cost of collection decreased from 0.53% of total revenues in 2022–2023 to 0.51 percent in 2022–2023.

>> In 2022–2023 there were 7.78 crore income tax returns submitted, which is 6.5 percent higher than in 2021–2022. Individuals make up the bulk of income tax return filers, accounting for 7.33 crore of all filings in 2022–2023.

>>For the assessment year 2022–2023 there were 9.34 crore taxpayers in India, an increase of 7.8% from the previous year. This statistic includes individuals as well. The term "taxpayer" refers to an individual who has either submitted an income return for the assessment year or, in the case of a relevant financial year, has had tax withheld at source but has not filed a report of income.