CBDT Expects To Exceed Budget Target Despite Corporate Tax Collection Lull

CBDT Expects To Exceed Budget Target Despite Corporate Tax Collection Lull
(Source: Income Tax Department/X)

The Central Board of Direct Taxes expects to achieve and exceed the tax targets set during the Union Budget 2023, amid a slowdown in corporate tax collections seen so far.

Net collections, as of date, stand at Rs 9.57 lakh crore, Nitin Gupta, chairman of CBDT, told BQ Prime in an interview. This marks 53% of the total budget estimates for direct taxes for fiscal 2024.

The department is looking at a target of Rs 18.23 lakh crore, with corporate income taxes expected to reach Rs 9.22 lakh crore and personal income tax at Rs 9 lakh crore.

The pace of corporate tax collection is not a worry, Gupta said. “We are in a good position... We are not concerned about the lesser growth of corporate tax collections; we expect it to still grow," he said.

According to tax experts, the lower pace of corporate tax collection can be linked to India Inc.'s reaction to slow global growth and reflect their waiting and backloading of tax payments to the second half of the year.

Corporate taxes were growing at a net rate of 12.3%, while personal taxes grew at a net rate of 32%, Gupta said. This puts the overall growth rate at 21.82%, he said.

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