At Rs 31.5 Lakh Crore, India＊s Tax Collection For This Financial Year Likely To Exceed Budget Estimate

India's tax collection for this financial year 2022-23 will exceed the budget estimate by nearly Rs 4 lakh crore on the back of buoyant income tax, customs duty and GST mop-up, Revenue Secretary Tarun Bajaj said earlier this week.

In an interview, he said the growth in tax revenues will continue to be higher than the GDP growth, helped by the formalisation of the economy and better compliance, as per the PTI report.

The Union Budget sets a tax collection target of Rs 27.50 lakh crore for the fiscal year ending March 2023. However, the expected tax collection is likely to exceed this mark.

Rs 31.5 Lakh Crore Tax Collection Expected

Revenue Secretary Bajaj said the direct tax collection, comprising personal and corporate taxes, would be close to Rs 17.50 lakh crore in the current financial year. The collection from indirect taxes (customs, excise, and GST) would be close to Rs 14 lakh crore.

The total tax collection is expected to be about Rs 31.50 lakh crore in FY 2022-23, he said.

The Union Budget 2022 had pegged direct and indirect tax collections at Rs 14.20 lakh crore and Rs 13.30 lakh crore for the current financial year, bringing the total figure to Rs 27.50 lakh crore.

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"We are using a lot of data. We have data from income tax and GST departments, and MCA (ministry of corporate affairs). We are also getting data regarding high value expenditure. Formalisation of economy and technology has helped improved compliance," Revenue Secretary Bajaj said.

Also Read: IMF Chief Calls India A 'Bright Spot' In The Global Economy

Budget 2023 Meetings Going On

The budget for the next financial year is likely to be presented on February 1, 2023.

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The pre-budget 2023 preparations were begun on October 10th, a week after which the Finance Ministry had sought suggestions from trade and industry on tax proposals for the Budget of Fiscal Year 2023每24.

And now, after the month-long pre-budget meetings amidst the Finance Ministry ended on November 10th, India＊s Finance Minister Nirmala Sitharaman has been holding meetings with various industry bodies and business leaders to put forth their suggestions.

With global recession fears looming, back to back repo rate hikes by the RBI and inflation concerns, the upcoming Budget 2023 will be a crucial one. It will be the last full budget by PM Modi led government, before the nation goes for Lok Sabha elections in 2024.

Also Read: Indian Banks Post Highest Combined Profit Of Nearly Rs 60,000 Crore In Sept Quarter

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