Tax Exemption Up to 1.2 Million, Yet Government's Coffers Swell by 1.7 Trillion

• Net direct tax collection surged 8% to over 17.04 trillion rupees from April to December 17, despite increased tax exemption limits.
• Corporate tax collection rose 10.54% to 8.17 trillion rupees, while non-corporate tax increased 6.37% to 8.47 trillion rupees.
• The surge is attributed to slower refunds, which saw a 14% year-on-year decline to 2.97 trillion rupees, and higher advance tax payments by companies.
• Advance tax from companies increased 8% to 6.07 trillion rupees, but non-corporate advance tax declined 6.49%.
• Deloitte India's Rohinton Sidhwa notes corporate earnings are good, but warns that slower refunds increase litigation for the tax department.

Why It Matters: Government's direct tax collection soared by 8% to 17.04 trillion rupees, defying tax exemption increases.