Trends in direct tax collection
R ecently, the Central Board of Direct Taxes (CBDT) released the latest data on direct collection in India. The data highlights some interesting trends in direct tax payments in India. In particular, the following points are noteworthy: Personal taxes growing faster than corporate taxes The growth in personal income tax has been far higher relative to corporate tax collections. In FY12 personal tax collection amounted to 53% of corporate taxes. The proportion of personal tax relative to corporate taxes. Top 5 states contribute 3/4 th of total tax collection Top five states contributed about 73% of the total tax collection in FY22. Out of these the top 3 states (Maharashtra, Delhi and Karnataka) contributed over 61% of the total tax collection in FY22. Though separate city wise data is not available, the anecdotal evidence suggests that the top 3 cities (Mumbai, Delhi and Bengaluru) may be contributing over 30% of the total tax collections. This highlights the massive regiona...