India’s Net Direct Tax Collections Surge 13% to ₹21.26 Trillion
India’s net direct tax collections have recorded a significant increase, rising by 13% to ₹21.26 trillion as of March 16 in the current fiscal year. This growth is primarily attributed to higher advance tax payments, indicating the country’s economic resilience and improved tax compliance.
Surge in Advance Tax Collections
Advance tax collections have seen notable growth, increasing by 14.6% to ₹10.44 trillion compared to ₹9.11 trillion in the same period of the previous fiscal year. This rise underscores the strengthening of economic activities and proactive compliance among taxpayers.
Breakdown of Tax Components
- Corporate Tax Collections: Corporate tax revenues have grown by 7.1%, reaching ₹9.69 trillion, compared to ₹9.05 trillion in the previous fiscal year.
- Personal Income Tax: Personal income tax collections have risen by 17.5%, amounting to ₹11.01 trillion, reflecting higher earnings among individual taxpayers.
- Securities Transaction Tax (STT): STT collections have jumped by 55.5% to ₹53,095 crore, indicating increased trading activity in the financial markets.
Gross Collections and Refunds
Gross direct tax collections have expanded by 16.15%, reaching ₹25.86 trillion. During this period, tax refunds amounting to over ₹4.6 trillion have been disbursed, marking a 32.5% increase over the previous year. The prompt issuance of refunds ensures smoother tax administration and boosts taxpayer confidence.
Government’s Revenue Targets
The latest figures indicate that the government is on track to meet its revenue targets for the fiscal year. The rise in direct tax collections reflects strong compliance measures, economic expansion, and a growing taxpayer base. This trend is expected to support the country’s fiscal stability while enabling continued investments in infrastructure and public services.
