India’s Net Direct Tax Collection Rises 15% to ₹17.78 Lakh Crore in FY25
India’s net direct tax collection has seen a significant increase of 15%, reaching ₹17.78 lakh crore in the current fiscal year 2024-25 (FY25), according to data released by the Central Board of Direct Taxes (CBDT).
Breakdown of Tax Collections
The CBDT’s data indicates that net non-corporate taxes, primarily comprising personal income tax, have grown by 21% year-on-year, amounting to approximately ₹9.48 lakh crore. In contrast, net corporate tax collections have risen by over 6%, totaling more than ₹7.78 lakh crore between April 1, 2024, and February 10, 2025.
Securities Transaction Tax Surge
A notable highlight is the substantial increase in collections from the Securities Transaction Tax (STT), which have surged by 65% to ₹49,201 crore so far this fiscal year. This surge reflects heightened activity in the securities markets during this period.
Refunds and Gross Collections
The government has issued refunds exceeding ₹4.10 lakh crore during this timeframe, marking a 42.63% increase compared to the same period last year. Despite these refunds, the gross direct tax collections up to February 10 have grown by 19.06%, surpassing ₹21.88 lakh crore.
Revised Estimates and Fiscal Targets
In the revised estimates for the current fiscal year, the government has adjusted its income tax collection target to ₹12.57 lakh crore, up from the initial budget estimate of ₹11.87 lakh crore. The STT collection target has also been revised upward to ₹55,000 crore from the earlier estimate of ₹37,000 crore. Conversely, the corporate tax collection target has been revised downward to ₹9.80 lakh crore from the budgeted ₹10.20 lakh crore.
Implications for Fiscal Health
The robust growth in net direct tax collections underscores the strengthening of India’s fiscal position. The significant rise in personal income tax and STT collections indicates increased economic activity and improved compliance. These developments are pivotal as the government endeavors to meet its fiscal targets and fund various developmental initiatives.
In summary, the 15% increase in net direct tax collections to ₹17.78 lakh crore in FY25 reflects a positive trajectory in India’s revenue mobilization efforts, contributing to the nation’s economic resilience.
