The finance ministry expects impressive growth in personal income tax collection to make up for the muted corporate tax collection, compared to previous year. Personal income tax collection could exceed estimates by ₹1.3 lakh crore, an official said.
“Revised estimates for direct tax will more or less remain the same as budgeted,” the official told ET on condition of anonymity.
Net direct tax collection increased 18.3% year-on-year to about ₹11.25 lakh crore in this fiscal till October 10. Net corporate income tax collection increased 11.26% year-on-year to ₹4.94 lakh crore.
The Centre had budgeted ₹10.20 lakh crore in corporate tax collection, a growth of 12%.
“A clearer picture is expected by December quarter collections,” the official said. Personal income tax collection stood at ₹5.98 lakh crore as on October 10.
The target for net personal income tax collection for this fiscal is ₹11.87 lakh crore, 13.6% higher than ₹10.44 lakh crore in 2023-24.
In the previous fiscal, the government had raised the direct tax collection estimate to ₹19.45 lakh crore when it presented revised estimates. Actual collection exceeded budget estimates by ₹1.35 lakh crore.
The indirect taxes target was lowered to ₹14.84 lakh crore in the revised estimates from ₹15.37 lakh crore budgeted earlier.