India’s direct tax collection has registered an increase of more than 9% from the current financial year to April to September period. According to official data, the net direct tax collection reached around Rs 9.6 lakh crore over a period of six months, which is a significant increase compared to the same period last year.

The Finance Ministry said that this increase has been mainly due to corporate tax and high revenue received from individual income tax. At the same time, despite the speed of refund, this increase in the net tax collection strengthens the revenue status of the government.

Experts believe that this growth reflects consumption and strength of commercial activities in India’s economy. Constant improvement in tax collection indicates that the scope of the formal economy is increasing and digital transactions have also improved compliance.

This good news for the government is also because additional revenue is required for higher expenditure on capital expenditure and social welfare schemes. If this trend continues in the remaining months of the financial year, it can help in controlling the fiscal deficit.

However, experts are also warning that global economic uncertainty, rising oil prices and possible lethargy in domestic demand may affect tax collection in the coming months.

Currently, April-September statistics assure the government of a strong start and are considered a positive signal in terms of financial stability.