India's Direct Tax Revenue Surges 15% to Exceed Rs 17.78 Lakh Crore in 2024-25
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Synopsis
India's net direct tax collection has increased by 14.69% to surpass Rs 17.78 lakh crore as of February 10, 2024. The significant growth reflects rising corporate profits, job creation, and increased efficiency in tax refunds, bolstering the overall economy.
Key Takeaways
- Net direct tax collection rose by 14.69%.
- Gross direct tax revenue increased by 19.06%.
- Refunds issued grew by 42.63%.
- Corporate profits and job creation are increasing.
- Lower fiscal deficit contributes to economic stability.
New Delhi, Feb 11 (NationPress) India's net direct tax collection, which primarily includes corporate tax and personal income tax, has increased by 14.69% to exceed the Rs 17.78 lakh crore threshold as of February 10 in the ongoing financial year, compared to Rs 15.51 lakh crore during the same timeframe in 2023-24, according to data released by the Central Board of Direct Taxes (CBDT) on Tuesday.
The total gross direct tax revenue saw a significant rise of 19.06%, climbing to over Rs 21.88 lakh crore from Rs 18.38 lakh crore in the same period of 2023-24.
Revenue generated from net non-corporate taxes, primarily personal income tax, surged by 21% year-on-year, reaching Rs 9.48 lakh crore during this period.
Net corporate tax collections increased by more than 6%, surpassing Rs 7.78 lakh crore between April 1, 2024, and February 10, 2025.
Furthermore, net collections from the securities transaction tax (STT), which is part of direct taxes, soared by 65% to Rs 49,201 crore so far in the current financial year.
During this timeframe, refunds exceeding Rs 4.10 lakh crore were issued, marking a 42.63% rise compared to the previous year.
As stated by senior officials, this trend highlights the improved efficiency of the Income Tax Department in processing refunds for taxpayers.
The impressive double-digit growth in direct tax collections signals an increase in corporate profits within a thriving economy and the rise in incomes due to the creation of more upscale jobs in the manufacturing and services sectors.
This upward trend in tax collections fortifies the macroeconomic fundamentals, enabling the government to raise funds for significant investments in infrastructure projects aimed at stimulating economic growth and supporting welfare initiatives for the underprivileged.
Moreover, it aids in maintaining a controlled fiscal deficit. A reduced fiscal deficit implies that the government needs to borrow less, allowing more liquidity in the banking system for substantial companies to borrow and invest, which in turn fosters higher economic growth and job creation.
Additionally, a lower fiscal deficit helps manage inflation, contributing to stable growth within the economy.
