The gross direct tax collection in 2019-20 fiscal dipped 4.92 per cent to Rs 12.33 lakh crore on account of reduction in corporate tax rate, increased standard deduction and personal I-T exemption limit, the Income Tax department said on Sunday.
The Central Board of Direct Taxes (CBDT), in a statement, said the fall in tax collection is on expected line and temporary in nature. The gross direct tax collection in 2018-19 fiscal stood at Rs 12,97,674 crore.
The Govt had lowered the net direct tax collection target for 2019-20 fiscal to Rs 11.70 lakh crore in the Revised Estimates, from Rs 13.3 lakh crore projected in Budget presented in July 2019. Although CBDT has not made public the actual net direct tax collection in 2019-20, adjusting the gross collection (Rs 12.33 lakh crore) with refunds (Rs 1.84 lakh crore) show net collection of around Rs 10.49 lakh crore during the fiscal. Net collection is gross collection minus income tax refunds.
In 2018-19, net direct tax collection stood at Rs 11.36 lakh crore. “It is a fact that the net direct tax collection for FY 2019-20 was less than the net direct tax collection for the FY 2018-19. But this fall in the collection of direct taxes is on expected lines and is temporary in nature due to the historic tax reforms undertaken and much higher refunds issued during the FY 2019-20,” the Central Board of Direct Taxes said.
As per data released by the CBDT, the actual gross corporate tax and Personal Income Tax (PIT) revenue mop up stood at Rs 6.78 lakh crore and Rs 5.55 lakh crore, respectively, in 2019-20, taking the actual gross direct tax collection to Rs 12,33,720.
In FY 2019-20, refunds worth Rs 1.84 lakh crore were given by CBDT, a 14 per cent increase over Rs 1.61 lakh crore given in FY 2018-19. However, gross collection would have clocked a 8 per cent growth to Rs 14.01 lakh crore in 2019-20 if revenue foregone in corporate tax and PIT is taken into account.