Net direct tax collections grew 9.8% to Rs 4.62 trillion till mid-June

India’s net direct tax collections for 2024-25 (FY25) grew 9.81 per cent to Rs 4.62 trillion till June 16 of the first quarter over the same period in FY24, officials aware of the figures said.

Of the total tax collected until June 16, corporation tax accounted for Rs 1.81 trillion, while personal income tax (I-T) stood at Rs 2.69 trillion. This includes advance tax 
 

collections, which contributed Rs 1.48 trillion during the period, they said. The first instalment of advance tax payment was due on June 15.
 

The tax collections until June 16, after adjusting net of refunds, are lower than the government’s FY25 projection, which has provisioned 13 per cent growth for both corporate and personal I-T collection in the Interim Budget.
 

“These are the provisional figures and reflect payments until midnight of June 16,” said the official cited above.

 

He said the final number was likely to be revised and could increase further on Tuesday as more information is expected after the two consecutive bank holidays. The gross collection until June 16 stood at Rs 5.15 trillion. The I-T department issued Rs 53,140 crore refunds until June 16.
 

“The preliminary figures indicate consistent and good collections in the first quarter,” said another bureaucrat.
 

Among other tax heads, the securities transaction tax contributes Rs 11,605 crore and the equalisation levy Rs 698 crore to the direct tax kitty. The government aims to raise Rs 21.99 trillion from direct taxes and Rs 16.31 trillion from indirect taxes in FY25.
 

City-wise collections showed that Mumbai contributes the most to the total mo-up, followed by Karnataka and Delhi. Mumbai accounted for about Rs 1.19 trillion, Karnataka and Goa (Rs 52,076 crore), and Delhi (Rs 48,876 crore).
 

In FY24, the Centre’s direct tax revenue was at Rs 19.58 trillion, adjusting for refunds, showing 17.7 per cent growth.

The government increased its first estimate of net direct tax collection for the year ended March from Rs 18.23 trillion to Rs 19.45 trillion in the FY25 Interim Budget, which was presented on February 1. This is mainly due to elevated personal I-T receipts by more than Rs 1.2 trillion.

The percentage of total taxes received by the Centre that come from direct taxes has been rising. In FY25, it is anticipated to be 57.4 per cent compared to the FY24 Budget’s 54.4 per cent estimate. With the government preparing for its full Budget in mid-July, it is prudent to see whether it revises its full-year target for direct taxes, given the previous fiscal growth.