The Central Board of Direct Taxes (CBDT) announced that the Center’s direct tax collection after adjusting for refunds has increased by 19.88% annually to ₹18.9 trillion. CBDT said in a statement it is according to provisional figures until Sunday. This growth contrasts with ₹15.76 trillion collected in the corresponding period of the previous fiscal year.
Net direct tax receipts, which include four installments of advance tax payments, now surpass 97% of the revised full-year target of ₹19.45 trillion. Finance Minister Nirmala Sitharaman raised the direct tax collection target for the current fiscal year during the presentation of the FY25 union budget on February 1, primarily due to a substantial upward revision of ₹1.21 trillion in personal income tax collection, reflecting the strong economic growth momentum.
The official economic growth estimate for this fiscal year is 7.6%, but government economists anticipate surpassing this forecast.
For the next fiscal year, the government anticipates a 13% increase in direct tax collections, reaching ₹21.98 trillion.
Ahead of the fourth installment of advance tax remittance on March 15, the direct tax authority conducted an e-campaign targeting assessees via email and text messages to enhance voluntary compliance, particularly focusing on individuals engaged in significant financial transactions but not paying corresponding taxes.
The tax authority leverages information from various agencies like banks, insurers, and registrars to assess the accuracy of reported income and tax liabilities.
TDS and advance tax remain crucial components of tax collection, with TDS contributing ₹10.44 trillion and advance tax contributing ₹9.1 trillion. Three-fourths of the advance tax came from corporations, with the rest from individual income tax payers, according to ministry data.
Sumit Singhania, a partner at Deloitte India, noted that the nearly 20% year-on-year growth in direct tax revenue reflects the sustained momentum of tax policy reforms throughout the year.