The income tax department yesterday released provisional data of its direct tax collection in India for 2017-18, precisely from April 2017 to Feb 2018. Though the collections have seen an increased by 19.5% when compared with collection of April 2016 to Feb 2017. But, an important event of “ 2016 Indian banknote demonetization ” which took place during the last corresponding year cannot be ignored.
Press Information Bureau, GOI, Ministry of Finance released the following data
- Net collections for April 2017-Feb 2018 amounted to Rs.7.44 lakh cr. Which is 19.5% higher compared to last year from April 2016 to Feb 2017.
- The net Direct Tax collections represent 74.3% of the Revised Estimates.
- Revised estimates of Direct Taxes for F.Y. 2017-18 being Rs. 10.05 lakh cr.
- Gross collections have increased by 14.5% to Rs.8.83 lakh crore during the current period.
- Where refunds amounting to Rs.1.39 lakh crore have been issued.
- The growth rate in net collections individually for CIT and PIT are
Corporate Income Tax (CIT) is 19.7% and
Personal Income Tax (PIT) is 18.6%
Analysis of data released by Press Information Bureau for April 2017 – Feb 2018 and from April 2016 to Feb 2017
|
April 2016-Feb 2017 |
April 2017-Feb 2018 |
Analysis |
|
|
Net collections |
6.17 lakh crore |
7.44 lakh crore |
(+) 1.27 lakh crore |
|
% of total budget estimates |
72.90% |
74.30% |
(+) 1.4% |
|
% Increase from last year |
10.70% |
19.50% |
(+) 8.80% |
|
CIT growth |
11.90% |
19.70% |
(+) 7.80% |
|
PIT growth |
20.80% |
18.60% |
(-) 2.20% |
|
Refunds issued |
1.48 lakh crore |
1.39 lakh crore |
(-) 0.09 lakh crore |
We can conclude from the above that though there is an increase in net collections, collections last year and corporate tax collections in April 2017 to Feb 2018. But, the government has lost to retain its personal income tax (PIT) payers. Which to a surprise were approx 10 times higher of CIT after adjusting refunds and 10% higher before adjusting the same during April 2016 – Feb 2017.