Direct tax collection in FY23 likely to top govt's Revised Estimates

Until Feb, net direct tax collection stood at Rs 13 trillion

Direct tax collection in 2022-23 is likely to exceed the government’s Revised Estimates (RE), potentially helping narrow the fiscal deficit.

Robust corporate tax collections and a likely recovery from pending tax demand have given the government confidence in actual revenue collections exceeding RE of Rs 16.5 trillion in the current fiscal year (2022-23, or FY23), according to government sources.

For FY23, revenue from direct tax, which includes individual and corporate taxes, has been revised upwards and is projected to grow by over 17 per cent to Rs 16.5 trillion, from Rs 14.08 trillion estimated earlier.

Until February, net direct tax collection (after adjusting