Net Direct Tax Collection Up 22.5% to Rs 6.93 Trillion

India’s net direct tax collection surged by 22.5% to Rs 6.93 trillion from April 1 to August 11, FY25, compared to Rs 5.65 trillion in the same period last year. Personal income-tax (PIT) growth outpaced corporation tax, with gross collections rising by nearly 24% before refunds.

Personal Income-Tax (PIT)

Current Collection: Rs 4.47 trillion

Previous Year’s Collection: Rs 3.44 trillion

Details: PIT growth significantly exceeded corporation tax, contributing substantially to the total tax revenue. The securities transaction tax, a part of PIT, rose to Rs 21,599 crore from Rs 10,234 crore, attributed to changes in tax rates and increased stock-market trading.

Corporation Tax

Current Collection: Rs 2.2 trillion

Growth Rate: 5.7%

Target Growth Rate: 12%

Details: The growth rate of corporation tax was lower than the targeted 12% for the financial year.

Refunds and Gross Collection

Direct Tax Refunds: Rs 1.20 trillion (up 33.49% from Rs 90,028 crore in FY24)

Gross Collection (before refunds): Rs 8.13 trillion (up 23.99% from the previous financial year)

Government Targets

Gross Tax Revenue for FY25: Rs 38.40 trillion

Direct Taxes Target: Rs 22.07 trillion

Indirect Taxes Target: Rs 16.33 trillion

Previous Fiscal Year Comparison

FY24 Net Direct Tax Collection: Rs 19.58 trillion (17.1% increase from FY23)

FY23 Net Direct Tax Collection: Rs 16.64 trillion

FY22 Net Direct Tax Collection: Rs 14.08 trillion

Piyush Shukla

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