The trend has more or less been the same for several years, given the scale of economic activity and investment in these states.
The time series data up to 2021-22 released by the Central Board of Direct Taxes (CBDT) showed India’s gross direct tax collection rose 173% to Rs 19.7 lakh crore in 2022-23 from Rs 7.2 lakh crore in 2013-14. Net direct tax receipts rose over 160% to Rs 16.6 lakh crore in 2022-23 from Rs 6.4 lakh crore in 2013-14, according to provisional data. Direct taxes largely include personal income tax and corporate tax. A small component of other direct taxes is also included.
The data also showed net direct tax collections increased by 121% from Rs 6.4 lakh crore in 2013-14 to Rs 14.1 lakh crore in 2021-22. Direct Tax buoyancy at 2.5 in 2021-22 is the highest recorded over the last 15 years. Direct-tax-to-GDP ratio has increased from 5.6% in 2013-14 to near 6% in 2021-22.
The data also showed that the cost of collection has decreased from 0.57% of total collection in the 2013-14 to 0.53% in 2021-22. The contribution of direct taxes to total tax revenue in 2021-22 was at 52.3%, higher than the 46.8% recorded in 2020-21. In 2000-01, it was at 36.3%. The data showed that tax growth rate in 2020-21 contracted nearly 10% due to the impact of the pandemic on the economy. It recovered to post a growth of 49.1% in 2021-22.
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