July 13, 2024 – India’s net direct tax collection for the financial year 2024-25 has recorded a substantial growth of 19.54%, amounting to Rs 5.74 lakh crore as of July 11, according to data released by the income tax department. This marks a significant rise from Rs 4.80 lakh crore collected during the same period in FY24, highlighting a strong upward trend in direct tax revenues over the past year.
The total refunds issued in FY 2024-25 also saw a notable surge, reaching Rs 70,902 crore compared to Rs 43,105 crore in FY24, indicating enhanced efficiency in processing claims and providing timely relief to taxpayers.
Government data further reveals that the total gross direct tax collection rose by 23.24% in FY25, totaling Rs 6,45,259 crore compared to Rs 5,23,563 crore collected in FY24. This comprehensive increase underscores robust tax compliance and economic activity despite challenging global and domestic conditions.
Key Net Direct Tax categories such as corporate tax, income tax, & securities tax have also shown impressive growth rates in FY25. Corporate tax collection grew by 20.44%, reaching Rs 2,65,336 crore in FY24-25 compared to Rs 2,20,297 crore in the previous fiscal year. Similarly, personal income tax collections surged to Rs 3,61,862 crore, reflecting a 22.76% increase from Rs 2,94,764 crore in FY 2023-24, indicative of rising individual earnings and effective tax administration.
The securities tax category demonstrated significant growth, doubling to Rs 16,634 crore in FY25 from Rs 7,285 crore in FY24, underscoring buoyant market activities and robust regulatory frameworks.
The government’s proactive tax policies and streamlined administrative measures have contributed to this positive trajectory in direct tax collections, reinforcing India’s fiscal resilience amid evolving economic dynamics.
As the financial year progresses, authorities continue to monitor and optimize tax administration strategies to sustain growth momentum and foster a conducive environment for economic expansion and development.
