Net direct tax mopup rises 16% to Rs 16.9 trillion until January 12

Net direct tax collection surged 15.9 per cent to Rs 16.9 trillion between April 1 and January 12 of 2024-25 (FY25), according to the latest data released by the income tax (I-T) department on Monday.

 

Of this, non-corporate tax — which includes taxes paid by individuals, Hindu Undivided Families, firms, bodies of individuals, associations of persons, local authorities, and artificial juridical persons — grew 21.6 per cent year-on-year (Y-o-Y) to Rs 8.7 trillion.

 

Corporate tax during the same period grew at a slower pace, 8.1 per cent, to Rs 7.7 trillion. The securities transaction tax grew 75.2 per cent to Rs 44,538 crore.

 

Gross direct collections during the period grew 19.9 per cent to Rs 20.6 trillion, with refunds growing 42.5 per cent to Rs 3.7 trillion during the same period.

 

According to Sandeep Puri, partner at Price Waterhouse & Co LLP, the robust growth in tax collection highlights the effectiveness of current fiscal policies and the resilience of the economy. “The growth in non-corporate tax, which primarily includes personal tax, also reflects improved compliance among individual taxpayers and enhanced tax administration efforts in expanding the tax base,” Puri said.

 

The government is targeting a total gross tax revenue of Rs 38.4 trillion for FY25. This includes a goal of Rs 22.07 trillion from direct taxes and Rs 16.33 trillion from indirect taxes. In the previous financial year (2023-24), the Centre’s direct tax revenue reached Rs 19.58 trillion after accounting for refunds, reflecting a growth rate of 17.7 per cent.