News Brief
India's Direct Tax-To-GDP Ratio Reaches 15-Year High Of 6.11 Per Cent In FY23
Increase in tax collection. (Representative Image)
India's direct tax-to-GDP ratio has soared to a 15-year high, reaching 6.11 per cent in the fiscal year 2022-23.
This ratio, which measures the contribution of direct taxes like corporate and personal income tax to the overall economy, is now near its peak of 6.3 per cent recorded in 2007-08, according to data from the Central Board of Direct Taxes (CBDT).
As reported by Moneycontrol, several economists suggest that if the government achieves its budget estimates for 2023-24, the direct tax-to-GDP ratio could rise further to about 6.2 per cent.
Key findings from the CBDT's data includes an increase in government spending on direct tax collection to Rs 8,452 crore in 2022-23.
Despite the rise in expenditure, the efficiency of tax collections improved, with the cost of collection decreasing to 0.51 per cent of total collections.
It's also noteworthy that the number of income tax returns filed in 2022-23 rose by 6.5 percent, reaching a total of 7.78 crore.
Additionally, the total number of taxpayers, including individuals, increased by 7.8 per cent to 9.34 crore for the assessment year 2022-23.
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