The growth rate, standing at 18 per cent, is the highest in the last seven financial years.

According to Economic Times, the direct tax collection has exceeded budget targets, as informed by a finance ministry official.

The ministry has also reported huge growth in the revenue collection through Advance Tax and Self-Assessment Tax under Personal Income Tax (PIT) which corroborates the ministry’s theory of increased voluntary tax deposits after demonetisation and bank account data being monitored by the IT department.

The increased revenue point to improving tax compliance as well as more and more businesses coming under the formal economic system due to the GST regime, as reported by Financial Express.