India's Direct Tax Collection Surges by Nearly 20% in FY 2025

India's gross direct tax collection surged by 19.94% to Rs20.64 lakh crore as of January 2025, driven by increased compliance and economic activity. Corporate and non-corporate taxes showed notable gains, while quick refunds boosted taxpayer trust. This marks the government's success in enhancing tax collection efficiency.

India's tax authorities have reported a robust increase in gross direct tax collections, hitting a staggering Rs20.64 lakh crore as of January 12, 2025, reflecting a 19.94% year-on-year growth. This leap from Rs17.21 lakh crore collected in the same period of the previous fiscal year signifies a thriving economic environment and improved tax compliance.

The breakdown reveals that corporate tax collections contributed Rs9.72 lakh crore, while non-corporate tax contributions surged to Rs10.45 lakh crore. Securities Transaction Tax (STT) revenues nearly doubled, reaching Rs44,538 crore, indicative of vibrant activity in the securities market. Additionally, other taxes amounted to Rs2,868 crore. These figures underscore the government's successful initiatives in strengthening tax compliance and leveraging technology for better administration.

Despite a substantial Rs3.74 lakh crore in refunds, reflecting a 42.49% rise, the net direct tax collection amounted to Rs16.89 lakh crore, up by 15.88% from Rs14.58 lakh crore in the previous fiscal. This commendable performance reflects not only a broader economic base but also improved taxpayer sentiment, bolstered by timely refund processing. Historical data from just a month prior, in December 2024, had already indicated a similar upward trend.

(With inputs from agencies.)