Owing to rising industrial hubs and IT sectors, Bengaluru is set to surpass Delhi to become the second-highest contributor in the country’s direct tax collection, as per an internal analysis of the Income-Tax Department. Mumbai, however, remained at the top position. According to the data, Bengaluru collected Rs 2.04 trillion in this financial year as against Rs 32,692 crore in FY08. Mumbai and Delhi, on the other hand, collected Rs 4.95 trillion and Rs 2.07 trillion, respectively during FY 23. During the period 2007-08 to 2022-23, India’s technology capital has shown a high growth of 525 per cent in direct tax collection, including personal income and corporation tax.

Speaking to media, a tax official said, “Growth in Bengaluru is mainly due to the start-up ecosystem leading to a spike in individual tax collection. Also, IT firms have grown multi-fold over the years. Infosys and Wipro are among top advance taxpayers." On being asked about the reason behind the growth in direct taxes, the official attributed it to the rise in the tax kitty in the IT city.

Mumbai: Rs 4.95 trillion

Bengaluru: Rs 2.04 trillion

Delhi: Rs 2.07 trillion

Chennai: Rs 1.05 trillion

Hyderabad: Rs 88,438 crore

Meanwhile, the country's gross direct tax collection rose 24.58 per cent to Rs 14.71 lakh crore till January 10 this fiscal, buoyed by an upsurge in personal income tax mop-up, the government data showed. After adjusting refunds, net direct tax collection stood at Rs 12.31 lakh crore, 19.55 per cent higher than the net collections for the corresponding period of last year. The net collection is 86.68 per cent of the total budget estimates of direct taxes for the current fiscal. The Budget had estimated direct tax collection at Rs 14.20 lakh crore this fiscal.

(With inputs from agencies)