India’s net direct tax collections recorded a robust 15.88% jump to ₹16.90 lakh crore during April 1, 2024–January 12, 2025, compared to the same period of the previous financial year, according to the latest figures compiled by the Income Tax Department.
The gross direct tax collections, before refunds, increased by 19.94% to ₹20.64 lakh crore during this period, compared to ₹17.21 lakh crore in the corresponding period of the previous year.
Personal income tax collections surged 21.6% to ₹8.74 lakh crore, compared to ₹7.2 lakh crore in the previous year, while corporate tax collections rose by 8.12% to ₹7.7 lakh crore from ₹7.10 lakh crore in the same period of 2023–24.
Securities Transaction Tax (STT), a key component of direct tax, surged by 75% to ₹44,500 crore during this period, compared to ₹25,415 crore in the corresponding period of the previous year.
Refunds totaling ₹3.74 lakh crore were issued during this timeframe, representing a 42.5% year-on-year increase.
The buoyancy in tax collections highlights a strong macroeconomic position, enabling the government to raise funds for large infrastructure investments and welfare schemes aimed at boosting economic growth and supporting the underprivileged.
This increase in revenue also helps maintain fiscal discipline. A lower fiscal deficit reduces government borrowing, leaving more funds in the banking system for private companies to borrow and invest, which in turn spurs economic growth and job creation.
Moreover, a reduced fiscal deficit helps keep inflation in check, reinforcing economic fundamentals and ensuring stability with growth.
The government aims to reduce the fiscal deficit to 4.9% of gross domestic product (GDP) in the current financial year, down from 5.6% in 2023–24, as part of its fiscal consolidation efforts to strengthen the economy.
(Inputs from IANS)
