Personal income tax growing much faster than corporate income tax

• October 12, 2023
• CA Chandan Agarwal's Office

Nearly 35 lakh refund cases held up, but CBDT Chairman assures speedy resolution

The rate of personal income tax (PIT) growth is nearly two times as that of corporate income tax (CIT), data from Central Board of Direct Taxes (CBDT) show. But nearly 35 lakh refund cases are held up on many grounds. The Chairman of Central Board of Direct Taxes (CBDT) Nitin Gupta on Tuesday assured that a “speedy resolution” will be found.

As on October 9, gross direct tax collection reached over ₹11-lakh crore showing a growth of around 18 per cent. After deducting refund of around ₹1.50-lakh crore, net direct tax collection touched ₹9.57-lakh crore, nearly 22 per cent higher than last fiscal. During the said period, net CIT grew by over 12 per cent while in growth in net PIT, including Securities Transaction Tax, was around 32 per cent.

CBDT attributed this growth in tax collection to three factors: technology, disclosures in income tax returns and around 53 lakh new tax payers in FY23. The collections now have reached more than 50 per cent and expectation is that growth will accelerate further. “We will surpass the Budget Estimates,” Gupta said here on Tuesday. The government aims to collect over ₹18.23-lakh crore which needs a growth of 10.5 per cent over Revised Estimate of over ₹16.5-lakh crore of FY23.

Refunds

Asked about instances where refunds are stuck as taxpayers were getting old demands pertaining to the period around 2010-11, Gupta said the department had undergone a technology shift around 2011 – from paper-based registers to computers – and hence some of those old demands were showing up in the accounts of the assessees.

Source: https://www.thehindubusinessline.com/economy/personal-income-tax-growing-much-faster-than-corporate-income-tax/article67404026.ece