Direct tax mopup posts 173% rise

NEW DELHI: Maharashtra topped the list of states and Union Territories with the highest collection of direct taxes in 2021-22 followed by Delhi, Karnataka, Tamil Nadu and Gujarat, data released by the tax department on Thursday showed.
The trend has more or less been the same for several years, given the scale of economic activity and investment in these states.

The time series data up to 2021-22 released by the Central Board of Direct Taxes (CBDT) showed India’s gross direct tax collection rose 173% to Rs 19.7 lakh crore in 2022-23 from Rs 7.2 lakh crore in 2013-14. Net direct tax receipts rose over 160% to Rs 16.6 lakh crore in 2022-23 from Rs 6.4 lakh crore in 2013-14, according to provisional data. Direct taxes largely include personal income tax and corporate tax. A small component of other direct taxes is also included.
The data also showed net direct tax collections increased by 121% from Rs 6.4 lakh crore in 2013-14 to Rs 14.1 lakh crore in 2021-22. Direct Tax buoyancy at 2.5 in 2021-22 is the highest recorded over the last 15 years. Direct-tax-to-GDP ratio has increased from 5.6% in 2013-14 to near 6% in 2021-22.
The data also showed that the cost of collection has decreased from 0.57% of total collection in the 2013-14 to 0.53% in 2021-22. The contribution of direct taxes to total tax revenue in 2021-22 was at 52.3%, higher than the 46.8% recorded in 2020-21. In 2000-01, it was at 36.3%. The data showed that tax growth rate in 2020-21 contracted nearly 10% due to the impact of the pandemic on the economy. It recovered to post a growth of 49.1% in 2021-22.