India’s direct tax collections have increased by 16.2%, totaling ₹25.86 lakh crore during the period from April 1, 2024, to March 16, 2025, as per the most recent figures from the Income Tax Department, compared to the same period in the previous financial year.

Direct taxes include corporate tax, personal income tax, and securities transaction tax (STT). Corporate tax collections surged to ₹12.40 lakh crore in the current financial year, up from ₹10.1 lakh crore in the same period last year. Personal income tax receipts also saw a notable increase, rising to ₹12.90 lakh crore from ₹10.91 lakh crore in the previous year.

STT collections experienced a sharp rise, reaching ₹53,095 crore compared to ₹34,131 crore in the prior year. However, other taxes, including wealth tax, saw a slight dip, dropping from ₹3,656 crore to ₹3,399 crore.

After accounting for refunds, which increased by 32.51% to ₹4.6 lakh crore, net direct tax collections stood at ₹21.26 lakh crore, reflecting a 13.13% year-on-year increase from ₹18.8 lakh crore.

The increase in tax collections highlights the country’s strong macroeconomic position. It enables the government to raise funds for large infrastructure projects, support welfare initiatives for the poor, and maintain fiscal discipline. A lower fiscal deficit reduces borrowing needs, leaving more funds in the banking system for corporate investments, ultimately contributing to higher economic growth and job creation.

Additionally, a lower fiscal deficit helps control inflation, stabilizing the economy and ensuring sustainable growth.

IANS