The Impact of Budget 2023-24 on Income Tax Filings and Tax Collection.
The recently announced Budget 2023-24 has outlined the government’s expectations regarding tax receipts and mobilization in the current fiscal year. As per the budget, the government anticipates gross tax receipts of ₹33.61 lakh crore. This signifies a significant target, and it becomes imperative to assess the impact on income tax filings and overall tax collection.
Revenue Secretary Sanjay Malhotra has urged income tax payers to file their returns promptly, emphasizing that the finance ministry does not contemplate extending the July 31 deadline. Last year, approximately 5.83 crore income tax returns were filed by the deadline. This year, it is anticipated that the number of filings will surpass last year’s figures.
The government acknowledges and appreciates the efforts of income tax return filers, as the filing process has seen a faster pace compared to previous years. However, taxpayers are advised not to wait until the last moment and refrain from expecting any deadline extensions. With the deadline swiftly approaching, it is crucial to file tax returns at the earliest convenience.
The tax mobilization target set in the budget aligns with a growth rate of 10.5 percent. On the Goods and Services Tax (GST) front, the growth rate stands at 12 percent so far. However, excise duties have experienced a decline due to rate reduction. It is hoped that once the impact of decreased tax rates subsides, there will be an increase in the collection of excise duties.
In terms of revenue mobilization, the government aims to collect ₹18.23 lakh crore from corporate and individual income tax, reflecting a 10.5 percent increase from the previous fiscal year. Furthermore, collections from customs duty are projected to rise by 11 percent to ₹2.33 lakh crore. The Budget also forecasts a 12 percent growth in GST collections for the next fiscal, totaling ₹9.56 lakh crore.
Considering both direct and indirect taxes, the gross tax collection is expected to grow by 10.45 percent, amounting to ₹33.61 lakh crore in the fiscal year 2023-24. This represents a substantial increase compared to the ₹30.43 lakh crore mobilized in the last financial year.
It is important for individuals and businesses to understand the implications of the Budget 2023-24 on their