Mumbai: The fiscal year 2023-24 proved to be highly profitable for many Indian corporations, with approximately 20 entities in the Nifty 50 index exceeding their EBITDA estimates. As profitability surged, India’s corporate tax revenue collections followed suit, reflecting the growth across various sectors, especially banking, oil, and technology.
According to an analysis by Motilal Oswal, the Nifty 500 companies achieved a 15-year high in the profit-to-GDP ratio, standing at an impressive 4.8%, a significant rise from 4% in FY 2022-23. This ratio highlights the robustness of Indian businesses despite global economic challenges.
In FY 2023-24, the gross corporate tax collection reached Rs 11.32 lakh crore, marking a 13% growth from the previous year’s Rs 10 lakh crore. This growth in corporate tax collections is a testament to the increased profitability of Indian companies, which also faced higher tax liabilities as a result.
The net corporate tax collection stood at Rs 9.11 lakh crore for FY 2023-24, representing a 10.26% increase from FY 2022-23. With significant profit increases across several sectors, India’s corporate tax revenue experienced a massive boost.
Among the top tax-paying companies, Reliance Industries Ltd led the way with a tax payment of Rs 20,713 crore, followed by State Bank of India at Rs 17,649 crore and HDFC Bank Ltd at Rs 15,350 crore. These three companies set the benchmark in corporate tax contributions in India.
Rank
Company Name
Tax Paid (in Rupees, Crores)
1
Reliance Industries Limited
₹20,713 cr
2
State Bank of India
₹17,649 cr
3
HDFC Bank
₹15,350 cr
4
Tata Consultancy Services (TCS)
₹14,604 cr
5
ICICI Bank
₹11,793 cr
6
Oil and Natural Gas Corporation (ONGC)
₹10,273 cr
7
Tata Steel
₹10,160 cr
8
Coal India
₹9,876 cr
9
Infosys
₹9,214 cr
10
Axis Bank
₹7,703 cr
Source: Bloomberg
Notable contributions: Bollywood superstar Shah Rukh Khan overtook Akshay Kumar to become India’s highest individual taxpayer, contributing Rs 92 crore in advance taxes. Similarly, Virat Kohli, one of India’s top cricketers, paid Rs 66 crore in taxes, further illustrating the contributions from the entertainment and sports industries.
The significant contributions from these industries, alongside major corporations, have ensured that FY 2023-24 remains a landmark year for corporate tax collections in India, boosting the economy and showcasing financial growth across the board.
FY 2023-24 marked a significant year for Indian corporations, with many exceeding profitability estimates and boosting corporate tax collections by 13%. Reliance Industries led with the highest tax payment of Rs 20,713 crore. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
