Net Direct Tax collection & Forex Reserves Rise

RBI: Repo Rate Unchanged, Government To Launch A State-Owned Digital Currency
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on telegram

According to the Central Board of Direct Taxes (CBDT) Net direct tax collection so far this fiscal grew 17 per cent to reach Rs 13.73 lakh crore, which is 83 per cent of the revised target for the full financial year. The growth in direct tax mop-up, which comprises personal income tax and corporate taxes, was driven by PIT collections. On a gross basis, the collection grew 22.58 per cent to Rs 16.68 lakh crore.

Refunds amounting to Rs 2.95 lakh crore have been issued during April 1, 2022 to March 10, 2023, which are 59.44 per cent higher than refunds issued during the same period in the preceding year. Direct tax collection, net of refunds, stands at Rs 13.73 lakh crore which is 16.78 per cent higher than the net collections for the corresponding period of last year.

This collection is 96.67 per cent of the total budget estimates and 83.19 per cent of the total revised estimates of direct taxes for the financial year 2022-23. After adjustment of refunds, the net growth in CIT (Corporate Income Tax) collections is 13.62 per cent and that in PIT (Personal Income Tax) collections including STT (Securities Transaction Tax) is 20.06 per cent, it said.

Forex reserves rise to USD 562.4 billion

Reserve Bank of India said India’s foreign exchange reserves rose by USD 1.46 billion to USD 562.4 billion as of March 3, arresting the four successive weeks. The forex reserves had fallen by USD 15.8 billion during the preceding four weeks. In the previous week ending February 24, the reserves had declined by USD 325 million to USD 560.942 billion, and the week before by a whopping USD 5.68 billion, showed the Reserve Bank of India (RBI) data.

The worst drop was in the week to February 10 when the reserves plunged by a steep USD 8.32 billion to USD 566.95 billion. The reserves have been falling as the rupee has been under pressure and the monetary authority has been taking measures to defend the currency from extreme volatility. In 2022 the cost of defending a falling rupee was over USD 115 billion of the reserves. In October 2021, the forex kitty had reached an all-time high of USD 645 billion.

The latest forex inflow was led by the US private equity fund GQG pumping in USD 1.9 billion in to the troubled Adani group. The inflow came after around USD 800 billion of FPI (Foreign Portfolio Investors) selling in equities and debt.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves gained by USD 28.2 million to reach USD 41.79 billion. The Special Drawing Rights (SDRs) fell USD 18 million to USD 18.10 billion. The country’s reserve position with the IMF was down USD 36 million to USD 5.062 billion in the reporting week, according to the RBI data.

(With input from PTI)

About the author: IE&M Team
IE&M Team
Indian Economy & Market is an Indian media and information platform producing data-backed news and analysis on all the vital elements at the intersection of the economy, stock markets, mutual fund, insurance, commodities, currency, technology, startups and business.

More articles by the author

Table of Contents