Net direct tax receipts rise 5%

FY21 collections exceed estimates at ₹9.45 lakh cr.; ‘fiscal deficit may be lower’

India’s net direct tax collections for the pandemic-hit financial year 2020-21 grew by almost 5% year-on-year to ₹9.45 lakh crore, exceeding the revised estimates of ₹9.05 lakh crore presented in the Union Budget and reflecting a gradual economic recovery in recent months. Tax experts said that the Vivad Se Vishwas Scheme to settle pending tax disputes also helped bolster the collections, with net Corporation tax collections for the year at ₹4.57 lakh crore. Revenues from personal income tax, including the Securities Transaction Tax, were ₹4.88 lakh crore, as per provisional data released by the Finance Ministry on Friday. Direct tax refunds grew more than 42% in FY21 to ₹2.61 lakh crore from ₹1.83 lakh crore in the previous year.