INSUBCONTINENT EXCLUSIVE:
Direct tax collections have exceeded budget estimatesNew Delhi: After a gap of three years, direct tax collections - which include corporate
tax and personal income tax - have exceeded the budget estimates for 2021-22, indicating economic recovery.As per budget documents, the
government has revised upwards the direct tax collection estimates for 2021-22 fiscal from Rs 11.08 lakh crore in budget estimates (BE), to
Rs 12.50 lakh crore in revised estimates (RE).As per the RE, the government expects to collect Rs 6.35 lakh crore from corporate taxes and
Rs 6.15 lakh crore from personal income taxes.This compares with BE figure of Rs 5.47 lakh crore and Rs 5.61 lakh crore in corporate taxes
and personal income taxes, respectively.The last time the government witnessed an increase in direct tax collection over Budget estimates
was in 2017-18.In 2017-18, the collection was revised upwards to Rs 10.05 lakh crore, from Rs 9.8 lakh crore in BE
The actual collection, however, worked out to be Rs 10.02 lakh crore.As per the Budgetary process, the government provides revenue
collection estimates or BE before the start of a financial year
These figures are revised at the time of presentation of the BE for next financial year
The actual collection figure, however, comes in later after the end of the fiscal.Usually, the tax collection at the end of the year falls
short of BE which is estimated before the beginning of a fiscal.In 2018-19, the BE for direct tax collection was Rs 11.50 lakh crore, which
was revised upwards to Rs 12 lakh crore
However, the actual collection turned out to be lower at Rs 11.37 lakh crore.In 2019-20, the BE for collection was pegged at Rs 13.35 lakh
crore, which was revised downwards to Rs 11.70 lakh crore
The actual turned to be even lower at Rs 10.49 lakh crore.In 2020-21, the direct tax collection in budget estimates was at Rs 13.19 lakh
The Covid-19 pandemic hit the country within a month of setting of this target, forcing the government to significantly revise downwards its
collection target to Rs 9.05 lakh crore in RE
The actuals, however, worked out to be Rs 9.44 lakh crore.Finance minister Nirmala Sitharaman on Tuesday pegged the direct tax collection at
Rs 14.20 lakh crore for FY2022-23
This includes Rs 7.20 lakh crore from corporate taxes and Rs 7 lakh crore from personal income taxes.
