India's Direct Tax Revenue Surges: A Beacon of Fiscal Strength

India's direct tax collections soared by 15.59% year-on-year to Rs 27.02 lakh crore in FY 2024-25, driven by significant rises in corporate tax, non-corporate tax, and securities transaction tax. This boost underscores the country's fiscal health and economic resilience amidst global uncertainties.

In a significant boost to India's fiscal health, the country's direct tax collections in gross terms have climbed by 15.59% year-on-year, reaching an impressive Rs 27.02 lakh crore for the financial year 2024-25, as reported by the Central Board of Direct Taxes (CBDT). This marks a notable increase from Rs 23.38 lakh crore logged in the previous year.

The surge in tax collections is largely fueled by higher corporate and non-corporate tax revenues, alongside a remarkable escalation in securities transaction tax (STT) receipts. Corporate tax collections rose sharply to Rs 12.72 lakh crore, up from Rs 11.31 lakh crore in the prior fiscal year, while non-corporate tax revenues swelled to Rs 13.73 crore from Rs 11.68 lakh crore last year.

Securities transaction tax (STT) collections experienced a substantial rise, reaching Rs 53,296 crore compared to Rs 34,192 crore in the previous fiscal. Meanwhile, wealth tax saw a decline, reducing from Rs 4,068 crore to Rs 3,366 crore. After adjustments for a significant 26.04% increase in refunds, the net direct tax collection stands at Rs 22.26 lakh crore, up by 13.57% from Rs 19.60 lakh crore. These figures indicate robust economic resilience and strengthen the government's revenue base, potentially facilitating increased public investment.

(With inputs from agencies.)