As per the official statement released, the government has garnered over half of the country's direct receipt target of Rs. 11.5 trillion i.e. Rs. 6.75 trillion during the first eight months of FY19. This means a straight increase in direct tax receipt by as much as 15.7% in comparison to the corresponding period a year ago.
During the period, the department has released refund amount amounting to as much as Rs. 1.23 trillion, taking the net direct tax receipt to Rs. 5.51 trillion, an increase of 14.7% from the previous year. Notably, issuance of refund also registered an increase of 20.8%during the same period a year ago.
In view of the concerns around indirect tax receipt which has been lower by some of the state government owing to frequent tax rate cuts, government is currently relying on divestment proceeds as well as healthy direct tax receipts to offset any downfall in revenue collection (lower than expected). For FY19, the central government maintains a fiscal deficit target of 3.3%.
The tax department said gross corporate tax receipts showed a 17.7% rise and gross personal income tax receipts grew 18.3% in the April-November period this year from a year ago.