New Delhi, March 18 (NationPress) India's direct tax revenue has seen a significant increase of 16.2 percent, reaching Rs 25.86 lakh crore from April 1, 2024, to March 16, 2025, in comparison to the same timeframe of the previous financial year, as per the most recent data released by the Income Tax Department.

The category of direct taxes includes corporate tax, personal income tax, and securities transaction tax.

Corporate tax collections have surged to Rs 12.40 lakh crore this fiscal year as of March 16, an increase from Rs 10.1 lakh crore during the same timeframe last year.

Personal income tax revenues rose to Rs 12.90 lakh crore in this period, up from Rs 10.91 lakh crore in the previous fiscal year.

Additionally, securities transaction tax (STT) collections have also shown a significant rise, reaching Rs 53,095 crore compared to Rs 34,131 crore last year.

Other tax categories, including wealth tax, experienced a slight downturn from Rs 3,656 crore to Rs 3,399 crore.

After factoring in refunds, which have also seen a notable rise of 32.51 percent to Rs 4.6 lakh crore, the net direct tax collection amounts to Rs 21.26 lakh crore, signifying a 13.13 percent increase from Rs 18.8 lakh crore during the same period last year.

This positive trend in tax collections reflects a robust macroeconomic landscape, enabling the government to gather more resources for investing in large-scale infrastructure projects aimed at boosting economic development and implementing welfare initiatives for the underprivileged.

Moreover, it contributes to maintaining a manageable fiscal deficit. A lower fiscal deficit allows the government to reduce borrowing, consequently freeing up more capital in the banking sector for major corporations to borrow and invest. This cycle ultimately promotes a higher economic growth rate and job creation.

Furthermore, a controlled fiscal deficit helps to stabilize the inflation rate, thereby reinforcing the economic fundamentals and ensuring sustainable growth.