Net direct tax collection jumps 22.5% YoY to ₹6.92L crore
India has witnessed a significant surge in its net direct tax collections for the current financial year, with an increase of 22.48% recorded up to August 11. The income tax department reported that the collections reached ₹6.92 lakh crore, marking a substantial rise from ₹5.65 lakh crore collected during the same period in the previous fiscal year.
Breakdown of the net direct tax collection
The Central Board of Direct Taxes (CBDT) provided a detailed breakdown of this collection today. The net direct tax collection includes Corporation Tax (CIT) at ₹2.2 lakh crore, Personal Income Tax (PIT) at ₹4.47 lakh crore, and Securities Transaction Tax (STT) at ₹21,599 crore. These figures are all after accounting for refunds issued by the government.
Increase in direct tax refunds
The government has also issued direct tax refunds amounting to ₹1.20 lakh crore until August 11 in FY25, representing an increase of 33.49% compared to the ₹90,028 crore issued during the same period in FY24. This robust tax collection is crucial for the government's fiscal strategy as it aids in meeting its fiscal deficit target for a specific year. For FY25, the Centre has set a fiscal deficit target of 4.9%, as outlined in the July budget.
Gross direct tax collection marks growth of 23.99%
Before adjusting for refunds, the gross direct tax collection stood at ₹8.13 lakh crore until August 11 FY25, marking a growth of 23.99% over the same period in the previous year. This figure underscores the significant increase in India's net direct tax collections for this financial year, and highlights the government's successful fiscal management strategies.
