Increase in tax returns to the government

 Why is there an increase in tax collection? An increase in the tax collection suggests that there is an upward trend in the economic growth which is suspicious. Only a few days ago has the OECD has published the estimated value of growth of the Indian economy to be 6.8% ( a sharp fall from the previous 8.7%) and has also forecasted the growth to further slow down to 6.2% for the FY24. "Unless the economy is on an upward trend, taxes cannot go on an upward trend", says Chairman Sangeeta Singh of the Central Board of Direct Taxes. The economic activities going up would mean the sales and purchases would also increase. Another main reason could be the government emphasizing about digital India. During the Covid-19 period people started paying more digitally which should have lead to this change. The initiative of providing information to tax payers could have also played a role.