Direct Tax Collections Surge by 20% to Reach ₹20.64 Lakh Crore in FY25

Economy

Direct Tax Collections Surge by 20% to Reach ₹20.64 Lakh Crore in FY25

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INDIATIMES

Direct Tax Collections Surge by 20% to Reach ₹20.64 Lakh Crore in FY25

Credited from: INDIATIMES

New Delhi: India has witnessed a remarkable 20% increase in direct tax collections, reaching approximately ₹20.64 lakh crore by January 12, 2025. This positive growth, as reported by the Central Board of Direct Taxes (CBDT), reflects a strong performance from both corporate and non-corporate tax sectors.

The net direct tax collection has seen a 15.88% rise, amounting to ₹16.90 lakh crore, primarily driven by an impressive rebound in personal income tax collections, which surged by 21.7%. In contrast, corporate tax collections climbed by 16.5% to ₹9.7 lakh crore during the same timeframe. Furthermore, the securities transaction tax (STT) recorded a substantial 75% jump, totaling ₹44,538 crore this fiscal year.

Despite an uptick in refunds which reached over ₹3.74 lakh crore, a 42.49% increase from the previous year, gross direct tax collections have demonstrated resilience. The Indian government aims for a fiscal collection target of ₹22.07 lakh crore, which is set to bolster overall economic stability despite the slight cooling in Goods and Services Tax (GST) growth.

This encouraging data positions the government on a favorable path to meet its fiscal deficit target of 4.9% of GDP, attributing to disciplined spending and robust tax collection measures. For more details, visit the source.