India Sees Surge In Direct Tax Collection In FY25

Net Direct Tax Collection The net direct tax collection, after adjusting for refunds, soared 18.35 per cent to touch Rs 11.3 trillion in FY25 between April 1-October 10

The data showed that in the overall tax collections, personal income tax (PIT) contributions surpassed corporation tax

Source : ABPLIVE AI

India reported a jump in its tax collections in the current 2024-25 fiscal year. The net direct tax collection, after adjusting for refunds, soared 18.35 per cent to touch Rs 11.3 trillion in FY25 between April 1-October 10. Comparatively, the tax collection for the corresponding period a year earlier stood at Rs 9.51 trillion, official data released by the Income Tax (I-T) Department revealed.

The data showed that in the overall tax collections, personal income tax (PIT) contributions surpassed corporation tax. While PIT stood at Rs 5.98 trillion (net) in the period under review, the amount reported for the year-ago period was Rs 4.88 trillion, reported Business Standard.

Corporation tax (net), on the other hand, clocked at Rs 4.95 trillion, increasing 11.2 per cent from the year-ago period. The jump in the tax however stood lower than the growth rate target of 12 per cent decided for the current fiscal year.

Notably, direct taxes include PIT and corporation tax. PIT itself includes securities transaction tax, which climbed to Rs 30,630 crore in the current fiscal year so far. Comparatively, the component clocked Rs 16,373 crore in the corresponding period last year. This gain in the collection can be attributed to the changes in tax rates and a jump in stock-market trading.

Gross direct tax collection, before refunds, touched Rs 13.57 trillion in the reviewing period, rising 22.30 per cent from the collection reported in the previous fiscal year. Till October 11, 2024, the government issued direct tax refunds worth Rs 2.31 trillion. This marked a 46.03 per cent climb from Rs 1.6 trillion issued during the corresponding period a year earlier.

According to the Budget presented earlier this year, the government plans to collect gross tax revenue of Rs 38.40 trillion in the current fiscal year. As part of the targets decided in the Budget, direct tax collection should be Rs 22.07 trillion, while the aim for indirect tax collection stands at Rs 16.33 trillion. In the preceding 2023-24 fiscal year (FY24), the Centre collected Rs 19.58 trillion in net direct tax.