Net Direct Tax Receipts refer to the taxes collected by the government directly from the taxpayers. The increase in Net Direct Tax Receipts can be attributed to various factors. Some of the factors behind the 11.2% growth in the Net Direct Tax receipts are:

• Higher compliance: The government’s efforts to increase tax compliance and widen the tax base have resulted in higher tax revenues. The introduction of measures like faceless assessment and e-proceedings has helped in curbing tax evasion and improving compliance levels.
• Better enforcement: The enforcement of tax laws has been strengthened with tax raids and surveys being conducted on suspected tax evaders. This has helped in uncovering unreported income and bringing it under the tax net.
• Improved economy: The Indian economy has been witnessing sustained growth over the past few years, which has resulted in higher incomes and profits. This has led to an increase in tax revenues, especially from the corporate sector.
• Effective tax policies: The government has introduced various tax policies aimed at reducing tax rates and improving ease of doing business. This has helped in boosting economic activity and attracting foreign investments, leading to higher tax revenues.
• Voluntary disclosure schemes: The government has introduced various schemes like the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 and Pradhan Mantri Garib Kalyan Yojana, aimed at encouraging taxpayers to declare their undisclosed income and pay taxes.
• Reduction in tax disputes: The government’s efforts to reduce tax disputes and simplify tax laws have resulted in faster dispute resolution and higher tax collections, especially from the direct tax category.

Overall, the increase in Net Direct Tax Receipts highlights the government’s efforts to improve tax compliance and widen the tax base, which has resulted in higher tax collections.