Direct tax collection in India has witnessed a significant increase, with the net collection growing by 19.54% to over Rs 5.74 lakh crore so far in the current fiscal year. The rise can be attributed to higher advance tax payments by corporates. The first instalment of advance tax, due on June 15, saw a substantial increase of 27.34% to Rs 1.48 lakh crore, comprising Corporation Income Tax (CIT) at Rs 1.14 lakh crore and Personal Income Tax (PIT) at Rs 34,470 crore.
As of July 11, 2024, the net direct tax collection amounted to Rs 5,74,357 crore, including CIT at Rs 2,10,274 crore and PIT at Rs 3,46,036 crore, as revealed by the Central Board of Direct Taxes (CBDT) data released on July 13. Additionally, Securities Transaction Tax (STT) contributed Rs 16,634 crore to the overall direct tax collection.
Comparing it to the corresponding period last year, when the net direct tax collection stood at Rs 4,80,458 crore, the current fiscal showcases a noticeable growth. Refunds totaling Rs 70,902 crore have been issued in FY25 until July 11, marking a 64.4% increase compared to the refunds issued during the same period in the previous year.
Moreover, the gross collection of direct taxes for April to July 11 amounted to Rs 6.45 lakh crore before adjusting for refunds, representing a growth of 23.24% compared to the previous year’s figure of Rs 5.23 lakh crore during the same period.
The interim budget for the full fiscal year has set the target for direct tax collection at Rs 21.99 lakh crore, indicating a positive trajectory for the country’s revenue generation and economic stability. The consistent growth in direct tax collection reflects the resilience of India’s economy amidst changing global dynamics and financial challenges.
