Bumper growth in tax collections this fiscal, say officials

India is likely to record 5-7 per cent higher direct tax collections than even the revised estimates of Rs 16.5 lakh crore for the current fiscal year ending on March 31.

Finance ministry officials say collections are going to exceed expectations by a sizeable margin, due to robust advance tax collections. As a result, the centre’s fiscal position would be impacted positively.

The revised estimates for the current fiscal had projected direct tax collections of Rs 16.5 lakh crore, about 16.2 per cent higher than the initially budgeted target of Rs 14.2 lakh crore.

As of March 10, collections, net of refunds, stood at Rs 13.73 lakh crore. Gross collections (pre-refunds) stood at Rs 16.68 lakh crore on March 10, registering a 22.6 per cent growth over the corresponding period of last year.

“We are still in the process of compiling the latest numbers. But we have locked in the latest figures by March 19, which is on par with the revised estimates,” an official said, adding that the department is hoping for collections to surpass the revised net estimates by 5-7 per cent.

The tax collection in the month of March is considered to be highest and buoyant due to the yearly closures by many companies. 

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