The provisional data released by the CBDT reveals that the Gross Direct Tax Collections increased by 17.95 percent over the previous corresponding period.

WHY?

There has been a rise taxpayers filing their Income Tax Returns.

Around 53 lakh new taxpayers filed income tax returns for the AY 2023-24

In addition, the use of technology to detect tax evasion and a smoother e-filing process has increased compliance.

Does the higher tax mop-up indicate that the economy is moving towards formalisation?