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India’s direct tax collections in gross terms grew by 15.59 per cent year-on-year to reach Rs 27.02 lakh crore in the financial year 2024-25, according to data released by the Central Board of Direct Taxes (CBDT). In 2023-24, gross direct tax collections stood at Rs 23.38 lakh crore. The increase in collections stems from higher revenues from both corporate and non-corporate taxes, along with a notable surge in Securities Transaction Tax (STT). The CBDT data reflects a significant rise across major tax categories, underlining a broader expansion in the country’s tax base and economic activity.
Corporate And Non-Corporate Tax Collections Increase
Corporate tax collections rose to Rs 12.72 lakh crore in FY25, up from Rs 11.31 lakh crore in FY24, indicating a significant boost in revenue. Non-corporate tax collections also saw a notable rise, reaching Rs 13.73 lakh crore compared to Rs 11.68 lakh crore in the previous fiscal. These increases reflect improved tax compliance and higher profitability across various sectors of the economy. The growth in both corporate and non-corporate tax revenues suggests a robust economic performance, better enforcement by tax authorities, and enhanced business earnings. This trend underlines a positive shift in the fiscal landscape and stronger fundamentals in key industries.
Sharp Rise In STT Collections
Securities Transaction Tax (STT) collections saw a sharp rise, climbing to Rs 53,296 crore in FY25 from Rs 34,192 crore in the previous year. The surge indicates heightened activity in capital markets and increased investor participation. STT forms a significant component of direct taxes, especially in periods of market buoyancy.
Decline In Other Direct Taxes
Other direct taxes, including wealth tax, recorded a decline. Collections fell from Rs 4,068 crore in FY24 to Rs 3,366 crore in FY25. Despite the drop, the overall upward trend in total direct taxes offset the impact of this reduction.
Net Direct Tax Collection After Refunds
Refunds issued in FY25 saw a substantial jump of 26.04 percent, amounting to Rs 4.76 lakh crore. After adjusting for these refunds, the net direct tax collection stood at Rs 22.26 lakh crore, marking a 13.57 percent increase compared to Rs 19.60 lakh crore in FY24.
Implications For Revenue And Spending
The increase in direct tax collections enhances the government’s revenue base and reduces its reliance on borrowings. Higher revenues may provide greater fiscal space for increased public spending on infrastructure, welfare programs, and development initiatives.
(With Inputs From ANI)
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