Direct tax is up 12.96 percent, and the gap to gross collections is entirely refunds

Punjab, Sept. 21 -- Net direct tax collections rose 12.96% year on year to Rs 12.12 lakh crore as of 17 September. Advance tax was up 16.18% at Rs 5.22 lakh crore. Refunds rose faster than either, at 29.19%.

The three numbers together

Gross collections were Rs 14.32 lakh crore, up 15.19% from Rs 12.44 lakh crore a year earlier. Refunds went out at Rs 2.20 lakh crore, up from Rs 1.70 lakh crore.

Gross up 15.19%, refunds up 29.19%, net up 12.96%. The gap between the first and the third is entirely the second.

That is worth stating because the net figure is the one that gets reported and the gross figure is the one that describes the economy. Faster refunds are a processing improvement, not a revenue problem - money that was always owed si...