Year Ender 2023: Direct tax will cross Rs 19 lakh crore in ten years, know Modi government’s plan for next year
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Year Ender 2023: Prime Minister Narendra Modi (Narendra Modi) Personal income and corporate tax collection is likely to increase to more than Rs 19 lakh crore during the 10-year tenure of the NEET government. This will provide more opportunities for people to take favorable tax measures. Net direct tax collection increased from Rs 6.38 lakh crore in FY 2013-14 to Rs 16.61 lakh crore in FY 2022-23. In the current financial year 2023-24, the collection from net direct taxes (personal income tax and corporate tax) has increased by 20 percent so far. If the growth continues at this pace, the collection is likely to be around Rs 19 lakh crore in the financial year ending March 31, 2024. This is more than the estimated amount of Rs 18.23 lakh crore in the budget for the financial year 2023-24. The government has been trying to simplify the tax system for many years with lower rates and fewer exemptions. In 2019, the government offered a lower tax rate for corporate houses that left the exemption. A similar scheme was launched for the people in April 2020.
The government will present the Vote on Account on February 1, 2024 as general elections are to be held in April-May. The new government formed after the elections is likely to present the full budget in July 2024. The Bharatiya Janata Party (BJP) government led by Prime Minister Narendra Modi came to power in 2014. Shardul Amarchand Mangaldas & Co Partner (Direct Tax) Gauri Puri said the digitization of tax transactions and the continuous focus on formalizing the economy has led to an increased propensity to pay taxes. He said that this is expected to provide some opportunities to the government to rationalize tax rates. Certainty regarding tax treaty application will be important to ensure ease of doing business in India. In 2024, the government is expected to continue to streamline direct tax provisions to increase tax certainty.
Deloitte India Partner (Direct Tax) Rohinton Sidhwa said that the full Budget will focus on the initiative to leverage the ‘China+1’ strategy to boost investment and innovation and the ongoing initiative to prepare for the World Bank ‘B-Ready Ranking’. There is a possibility of concentration. Meanwhile, INDUSLAW partner (indirect tax) Shashi Mathews said the high tax rate has stunted the “rapid growth” of the online gaming industry. He said that it can be expected that the government will reconsider some of these points. Some of these issues are pending before the courts and some relief can be expected from the decisions of the courts. Overall, taking decisions on these issues in 2024 will be in favor of the stakeholders.
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