What is Tax Collection?

Tax Collection

About Tax Collection

What is Tax Collection?

In order to garner income for the government to finance social projects, tax is collected from individuals and corporations via direct tax and indirect tax. These two tax collections form the government's revenue.
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Revenue receipts can be of two types — non-tax revenue and tax revenue. Tax revenue is the income gained by the government through taxation.
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Tax revenue forms a part of the Receipt Budget, which in turn is part of the Annual Financial Statement of the Union Budget. Union Budget keeps the account of the government's finances for the fiscal year that runs from April 1 to March 31. Union Budget is classified into Revenue Budget and Capital Budget.

Tax revenue is the result of the application of a tax rate to a tax base. Total tax revenue as a percentage of GDP indicates the share of the country's output collected by the government through taxes. Tax revenue can be regarded as one measure of the degree to which the government controls the economy's resources.
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Taxes collected from both direct tax and indirect tax are the government’s tax revenue. It includes collections from income tax, corporation tax, customs, wealth tax, tax on land revenue, etc.
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Direct tax is the tax that is paid directly to the government by the person or company on whom it is levied. Income tax, wealth tax, corporation tax, and property tax are some examples of direct tax.
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Indirect taxes are those that are collected by intermediaries from individuals and corporations who bear the burden of the tax and passed on to the government. Goods and Services Tax (GST) is an example of indirect tax. Corporation tax forms a large chunk of the government’s tax revenue.

Latest Updates on Tax Collection

Net direct tax collections rise 20% at Rs 18.9 trillion till March 17

2 min read Last Updated :Mar 19 2024 | 11:19 PM IST
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United Spirits gets Rs 4.47 cr tax demand from Maharashtra authorities

1 min read Last Updated :Mar 06 2024 | 10:33 PM IST
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National pension system added 21.5% fewer corporate subscribers in 2023

3 min read Last Updated :Mar 03 2024 | 10:30 PM IST
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TDS, explaining the rise and rise of a safe-bet tax collection method

2 min read Last Updated :Feb 02 2024 | 12:34 PM IST
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Decadal perspective: Tax base is becoming deeper, wider under Modi govt

1 min read Last Updated :Feb 02 2024 | 7:22 AM IST
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GST collections rise 10.4% to Rs 1.72 trn in January, second highest-ever

1 min read Last Updated :Jan 31 2024 | 8:04 PM IST
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Net direct tax collection grows 19% to Rs 14.70 trillion so far in FY24

2 min read Last Updated :Jan 11 2024 | 4:25 PM IST
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Punjab's GST revenue rises 16.52% to Rs 15,524 crore in April-December

2 min read Last Updated :Jan 03 2024 | 8:12 PM IST
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Tax collection to grow 3 times to over Rs 19 trn in 10 years of Modi govt

5 min read Last Updated :Dec 29 2023 | 11:33 AM IST
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Govt to stick to Rs 34 trillion tax collection goal in revised estimate

2 min read Last Updated :Dec 12 2023 | 11:02 AM IST
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GST mop-up rises 15% to Rs 1.68 trn; two-wheeler sales enter fast lane

4 min read Last Updated :Dec 01 2023 | 11:08 PM IST
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New Zealand reverses ground-breaking smoking ban to fund tax cuts

3 min read Last Updated :Nov 28 2023 | 5:37 PM IST
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LIVE: Rahul visits Congress war room to oversee preparations for Raj polls

2 min read Last Updated :Nov 19 2023 | 11:09 PM IST
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India's net direct tax collection rises 22% to over Rs 9.57 trillion

2 min read Last Updated :Oct 10 2023 | 8:14 PM IST
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Higher 20% TCS on overseas remittances, foreign tour kicks in from Oct 1

2 min read Last Updated :Sep 28 2023 | 4:01 PM IST
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India may not be planning tax changes for bond inclusion in global indices

2 min read Last Updated :Sep 27 2023 | 4:15 PM IST
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Net direct tax collection rises 23.5% to Rs 8.65 trn in April-Sept

1 min read Last Updated :Sep 18 2023 | 7:18 PM IST
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GST collection grows 11% YoY to around Rs 1.6 trillion in August: Govt

1 min read Last Updated :Sep 01 2023 | 2:37 PM IST
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Direct tax collections rise 16% to Rs 6.53 trillion till Aug 10: I-T dept

1 min read Last Updated :Aug 11 2023 | 10:57 PM IST
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States surge ahead

6 min read Last Updated :Aug 08 2023 | 9:48 PM IST
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