DIRECT TAXES

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Context

• India’s net direct tax collections growth, which stood at about 17% for this year by early March, is expected to moderate to 15% for the full financial year 2022-23- Finance Ministry.

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More on the news

• The government’s net receipts from direct taxes had grown about 49% in 2021-22 to almost ₹14.09 lakh crore.
• The sharp growth was attributable to the economy’s gradual recovery from the COVID-19 pandemic lockdowns that had hit economic activity in the previous year.

Slowing growth

• Inflows of direct taxes, that include corporate income tax, personal income tax and the securities transaction tax (STT), had risen almost 20% as of mid-December 2022.
• But each successive month has recorded a slight slowdown in the growth rate.
• By February 10, the growth rate stood at 18.4%, which declined further to 16.8% by March 10.
• The total net direct tax collection stood at ₹13.73 lakh crore. That amount was 7% of the Budget estimates for 2022-23 and 83.2% of the revised estimates for direct taxes.

https://www.thehindu.com/business/Economy/net-direct-tax-growth-for-2022-23-to-slow-to-15/article66664872.ece