The Central Board of Direct Taxes (CBDT) released data on Tuesday revealing a remarkable surge in the number of taxpayers filing returns, with figures more than doubling over the past nine years. The fiscal year 2022-23 witnessed 7.8 crore Income Tax Returns (ITRs) filed, marking a substantial 105% increase compared to the 3.8 crore returns filed in 2013-14.
Key highlights from the data include Tax Deducted at Source (TDS) leading direct taxes, amounting to Rs 8.2 lakh crore in the fiscal year 2022-23. Advance tax followed closely at Rs 7.3 lakh crore, while self-assessment tax reached Rs 1.3 lakh crore.
Notably, net direct tax receipts witnessed an impressive growth of 160.5%, surging from Rs 6,38,596 crore in FY14 to Rs 16,63,686 crore in 2022-23, according to the tax department’s report.
The government has set an ambitious target of collecting Rs 18.2 lakh crore from direct taxes, encompassing personal income tax and corporate tax. This goal represents a 9.6% increase compared to the Rs 16.6 lakh crore collected in the previous fiscal year.
The CBDT data also disclosed a substantial rise in gross direct tax receipts, climbing 173.3% to Rs 19,72,248 crore in FY23 from Rs 7,21,604 crore in FY14. The direct tax-to-GDP ratio increased from 5.6% to 6.1%, showcasing the growing significance of direct taxes in the economy.
Crucially, the cost of collection decreased from 0.6% of total collection in FY14 to 0.5% of total receipts in the last fiscal year, underscoring the efficiency gains achieved through the tax department’s reform initiatives.
A noteworthy aspect is the tax department’s strategic use of technology and big data to enhance compliance and eliminate loopholes. Over the years, the government has implemented a series of reform measures aimed at streamlining tax processes, and the latest data reflects the success of these efforts in not only increasing taxpayer compliance but also in significantly bolstering direct tax collections.
Direct taxes constituted 54.6% of total revenues in 2022-23, demonstrating a steady rise from the 52.3% recorded in the previous fiscal year. The positive trend in taxpayer participation, coupled with the effective integration of technology, bodes well for the fiscal health of the country and underscores the government’s commitment to fostering a transparent and efficient tax ecosystem.
