Direct taxes expected to exceed budget target by about 30%

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direct tax: Direct tax collections in the current fiscal are expected to exceed the budgeted target of Rs 14.20 lakh crore by nearly 30%, a senior official said on Tuesday.

Central Board of Direct Taxes (CBDT) chairman Nitin Gupta has said that TDS provision for online gambling may be changed in the budget for the upcoming financial year to deal with tax evasion.

“At present there is a provision to deduct TDS on online gaming. The existing provision is, if it needs to be amended or maintained in the same way, that needs to be seen,” he said.

Currently, the revenue from online gaming is subject to 10% tax deducted at source (TDS). Gupta continued by saying that even the budget target for the upcoming financial year (2023-24) is likely to be higher considering the current jump in revenue.

“For the current year we believe we will exceed the budget estimate by a huge margin, it may be 25-30 per cent more than what we have been given. Looking at the jump in tax collection next year, we will give a good collection to the government.

The net direct tax collection for the current financial year will be between Rs 17.75 and 18.46 lakh crore, with an increase in tax revenue of 25 to 30 per cent. Speaking outside the inauguration of the Taxpayers Lounge at the India International Trade Fair, Chairman, CBDT (IITF).

Between April 1 and November 10, gross direct tax receipts totaled Rs 10.54 lakh crore, a growth of 31%. Net collections after accounting for refunds reached Rs 8.71 lakh crore or 61.31 per cent of the Budget Estimate (BE) for the total tax collection target for the year.

According to Gupta, the tax department is looking into how a better audit trail can be developed for spending and profiting from such online activities now drawing attention to online gaming.



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