Direct tax collections in India, has seen a robust surge of 15.59% year-on-year in gross terms, reaching Rs 27.02 lakh crore in the financial year 2024-25, as per the data of the Central Board of Direct Taxes (CBDT). These collections stood at Rs 23.38 lakh crore in 2023-24.
This rise in collections is because of the higher corporate and non-corporate tax revenues. The surge is also linked with the surge in securities transaction tax (STT) receipts. Like wise, Corporate tax collections, which stood at Rs 11.31 lakh crore in the previous fiscal, now rose to Rs 12.72 lakh crore.
Meanwhile, the Non-corporate tax collections, which were Rs 11.68 lakh crore last fiscal year, has now surged to Rs 13.73 crore.
Furthermore, Securities Transaction Tax (STT) collections rose to Rs 53,296 crore, up from Rs 34,192 crore the previous year.
Notably, direct taxes are paid directly to the government. These taxes include income tax, corporate tax, and STT, levied on individuals and businesses.
Apart from this, wealth tax and other levies declined to Rs 3,366 crore from Rs 4,068 crore. After refund adjustments, which rose 26.04% to Rs 4.76 lakh crore, net direct tax collections reached Rs 22.26 lakh crore in 2024-25. This marks a 13.57% increase from Rs 19.60 lakh crore the previous year.
What The Trend Suggests?
The increase in tax collections provide a boost to India’s fiscal health. Furthermore, this enhances the government revenue and lowers the reliance on borrowing.
This growth also showcases India’s economic resilience amid global uncertainty. The government can invest more in infrastructure, social welfare, and other vital sectors, potentially driving economic expansion, with increased tax revenue.
