Today, we are here to talk about the direct as well as indirect tax collection for the financial year 2017. This is also one of the impacts of demonetization, which was announced in the November of the last year. The government has surpassed the tax collection approximation for 2016-17 fiscal at Rs 17.10 lakh crore. The revised estimates (RE) gave in Budget on February 1 had anticipated tax accumulations of Rs 16.97 lakh crore. The Finance Ministry in an announcement said that tax accumulation of Rs 17.10 lakh crore is a development of an approximate 18 per cent as compared to a year ago. According to Mr. Hasmukh Adhia, the Revenue Secretary, this total net revenue growth is the highest in the past 6 years. Let us look into further details:
Let’s Have A Look On Some Previous Tax Collection Data
Direct tax accumulation remained at Rs. 8.47 lakh crore till March. As per an official explanation, this was 14.2 per cent more than the net gathering for the comparing time frame a year ago. Out of this, the indirect accumulation (Central Excise, Customs and Service Tax) in financial year 2016-17 remained at Rs. 8.63 lakh crore, which is 22 per cent higher than the genuine income receipts in financial 2015-16.
The Current Year Scenario
The updated estimates for 2016-17 pegged the aggregate duty income for both direct as well as indirect taxes at Rs. 16.97 lakh crore. This was higher than the government’s planned approximation of Rs. 16.25 lakh crore. The real tax wage to the government remained at Rs. 17.10 lakh crore, beating the updated target by 18 per cent. As far as gross income collections, the development rate under Corporate Income Tax (CIT) is 13.1 per cent, while that under Personal Income Tax (PIT) is 18.4 per cent. However, in the wake of conforming for refunds, the net development in CIT accumulations is 6.7 per cent, while that in PIT accumulations is 21 per cent. Refunds adding up to Rs. 1.62 lakh crore were issued amid April 2016-March 2017, which is 32.6 per cent higher than the refunds issued amid financial year 2015-16.
Details of the Taxes for the Year 2016-17
Speaking about the Central Excise, the net collection remained at Rs. 3.83 lakh crore amid financial 2016-17 when contrasted with Rs. 2.86 lakh crore in the past financial year, in this manner enrolling a development of 33.9 per cent. Net collection by virtue of service tax amid financial 2016-2017 remained at Rs. 2.54 lakh crore when contrasted with Rs. 2.11 lakh crore in the past budgetary year, and hence, enrolling a development of 20.2 per cent.