Sustaining 19.5% growth in direct tax mop-up in FY24 may be difficult: Source

Sustaining the present 19.5 per cent progress price in earnings and company tax collections could also be tough in subsequent fiscal yr given headwinds from a slowing world and excessive base impact, a authorities supply mentioned.

Internet direct taxes, that are made up of non-public earnings tax and the tax levied on company earnings, have seen a file progress in present fiscal yr, topping up the numbers projected within the Funds.

The anticipated decrease nominal GDP progress in 2023-24 on the again of threats of world recession may affect earnings tax assortment, the federal government supply advised reporters forward of the presentation of Union Funds 2023-24 on February 1.

The web direct tax assortment grew 19.55 per cent to Rs 12.31 lakh crore until January 10. That is 86.68 per cent of the Funds estimates for present fiscal yr.

The forthcoming Funds can have revised income estimates for present fiscal yr in addition to tax assortment estimates for the subsequent yr.

It might be tough to keep up present 19.5 per cent progress price in internet direct taxes in 2023-24, the supply mentioned.

As per first advance estimates, India’s nominal GDP is projected to develop at 15.4 per cent this fiscal yr and after adjusting inflation, actual GDP progress is predicted to be 7 per cent.

Economists count on actual GDP progress to decelerate to 6-6.5 per cent subsequent fiscal yr and a decrease nominal GDP progress on account of declining inflation.