Net direct tax collections for the financial year 2024-25 have surged by 16%, reaching ₹9.95 lakh crore as of September 17, according to the latest data from the Central Board of Direct Taxes (CBDT). The increase is driven by robust growth in both personal income tax and corporate tax collections.
Net personal income tax collections increased by 18%, reaching ₹5.15 lakh crore, up from ₹4.13 lakh crore. Similarly, net corporate tax collections saw an 11% rise, climbing to ₹4.52 lakh crore from ₹4.09 lakh crore in the previous year.
The securities transaction tax (STT) on securities like stocks, mutual funds, and derivatives traded on recognised stock exchanges in India nearly doubled this fiscal, rising from ₹13,352 crore last year to ₹26,154 crore this year as of September 17, 2024. This sharp increase is attributed to a surge in trading activity across the country’s exchanges.
Advance tax collections as of September 17, 2024, have risen to ₹4.36 lakh crore, marking a nearly 23% increase from last year’s ₹3.55 lakh crore. This growth is largely fueled by a 39% surge in personal income tax advances, which reached ₹1.04 lakh crore. Corporate tax advances also saw an 18% rise, totalling ₹3.31 lakh crore compared to ₹2.80 lakh crore in the previous fiscal.
The government has issued refunds amounting to ₹99,320 crore in personal income tax and ₹1.06 lakh crore in corporate tax, reflecting a massive 47% and 67% growth in direct tax collections, respectively, for the current fiscal year.
While refunds on personal and corporate taxes grew alongside higher gross collections, refunds on other taxes, including equalization levy, fringe benefit tax, wealth tax, and several others, declined by 36%. This decline contributed to a modest 13% increase in net collections for these other taxes, rising from ₹1,611 crore to ₹1,821 crore.
Robust tax collections play a crucial role in helping the government achieve its fiscal deficit target for the year. In the July budget, the Centre set a fiscal deficit target of 4.9% for FY25.
