New Delhi: India's direct tax collections have experienced a significant year-on-year growth of 16.15 percent, totaling Rs 25.86 lakh crore for the financial year 2024-25 (as of March 16, 2025), according to the latest figures from the Central Board of Direct Taxes (CBDT).
This increase in collections is primarily due to enhanced revenues from both corporate and non-corporate taxes, along with a notable rise in securities transaction tax (STT) receipts.
Corporate tax collections climbed to Rs 12.40 lakh crore, up from Rs 10.1 lakh crore in the previous fiscal year. Meanwhile, non-corporate tax collections surged to Rs 12.90 lakh crore, compared to Rs 10.91 lakh crore last year.
Securities transaction tax (STT) collections saw a remarkable increase, reaching Rs 53,095 crore, in contrast to Rs 34,131 crore the previous year.
Direct taxes encompass the taxes that individuals and businesses pay directly to the government, including income tax, corporate tax, and securities transaction tax.
Conversely, other taxes, such as wealth tax, experienced a decline from Rs 3,656 crore to Rs 3,399 crore.
After factoring in refunds, which also rose significantly by 32.51 percent to Rs 4.6 lakh crore, the net direct tax collection amounted to Rs 21.26 lakh crore, marking a 13.13 percent increase from Rs 18.8 lakh crore during the same period last year.
The growth in tax collections is a promising indicator of India's fiscal health, as it bolsters the government's revenue base and lessens reliance on borrowing.
It also indicates a degree of economic resilience in the face of global uncertainties. Increased tax revenues could enable the government to enhance public investment in infrastructure, social welfare, and other vital sectors, thereby promoting overall economic growth.
