The government's revised estimate for the just-concluded financial year was ₹16.5 trillion. The income tax department gave tax refunds of over ₹3 trillion in FY23. The double-digit growth in tax collection is along expected lines.

Gross direct tax collections for FY23 before adjusting for tax refunds stood at ₹19.68 trillion, a growth of 20.33%, CBDT said.

The comparatively lower growth rate for tax collections after adjusting for tax refunds, compared to the growth rate in gross tax collections reflects higher payouts in tax refunds.

The original budget estimate for direct tax revenue in FY23 was fixed at ₹14.20 trillion which was revised to ₹16.50 trillion, CBDT said, adding that provisional direct tax collection after adjusting for refunds has exceeded budget estimate by 16.97% and the revised estimate by 0.69%.

Gross collections of direct taxes before adjusting for refunds for FY23 stands at ₹19.68 trillion showing a growth of 20.33 % over the gross collections of ₹16.36 trillion in FY22, CBDT said.

Gross corporate tax collections in FY23 came in at ₹10.04 trillion showing a growth of 16.91% over what was collected in the preceding year. Gross personal income tax collections including securities transaction tax in FY23 stand at ₹9.6 trillion showing a growth of 24.23% over the preceding year.

Refunds of ₹3.07 trillion have been issued in the FY23 showing an increase of 37.42 % over the refunds of ₹2.23 trillion issued in FY22, CBDT said.

Figures show that both direct and indirect taxes are showing strong buoyancy. On Saturday, the finance ministry had said Centre and states collected ₹18.10 trillion in FY23 in GST revenue receipts and that the average gross monthly collection for the full year was ₹1.51 trillion.