Treasury highlights stable expense management
The implementation rate of development expenses from the state budget stood at 13 per cent at the end of April, slightly higher than the ten-year average of 12 per cent for the same period.
direct tax revenue
10 years of Modi government: Tax reforms, challenges
– Tax filing process has been streamlined through e-filing
– Corporate tax rates have been lowered to encourage investments
– Advance Pricing Agreement program has brought clarity to transfer pricing issues
– Record 125 APAs signed in 2023-24
– Net direct tax collections increased from Rs 6.38 lakh crore in 2013-14 to Rs 19.18 lakh crore in 2023-24
– Total number of ITRs filed in 2022-23 increased by 104.91% compared to 2013-14
– Taxpayers still struggle with understanding the complex GST system
– Challenges include intricate tax rate structure, taxation on consideration-less transactions, and uncertain application of pre-GST decisions
– Vague notices/orders lacking detailed reasoning disrupt the business environment
– Non-constitution of Goods and Services Tax Appellate Tribunals is a concern for taxpayers
– High personal income tax rates compared to global standards may hinder compliance
– Personal income tax collection is higher than corporate tax collection
– Litigations from aggressive tax claims and transfer pricing disputes pose challenges
– Delays in tax refunds and assessment processing contribute to taxpayer grievances.
India’s direct tax collections surge 17.7% in FY24 to ₹19.58 tn
The Central government has collected ₹19.58 trillion in direct tax revenue in FY24 after adjusting for refunds, showing a 17.7% growth annually.