Record Direct Tax Collection Surpasses Targets Amid Historic Refunds

The provisional net direct tax collection for the fiscal year 2024-25 reached a record high, growing by 13.57% to over Rs 22.26 lakh crore. The income tax department issued the highest-ever refunds amounting to Rs 4.76 lakh crore, despite exceeding its collection targets originally set in the budget.

The income tax department's provisional net direct tax collection for the 2024-25 financial year has achieved the target, growing 13.57% to exceed Rs 22.26 lakh crore. This marks an impressive accomplishment as the department issued record-breaking refunds, official data revealed on Friday.

The government initially set the target at Rs 22.07 lakh crore in the July 2024 budget and later revised it to Rs 22.37 lakh crore in February 2025. Despite issuing a record Rs 4.76 lakh crore in refunds, the department successfully surpassed the budget targets.

Breaking down the figures, corporate tax collection demonstrated significant growth, standing at Rs 9.86 lakh crore, an 8.30% rise, while non-corporate tax collection grew 17% to reach Rs 11.82 lakh crore. The tax buoyancy factor was recorded at 1.57, showcasing the robust performance amidst GDP growth.

(With inputs from agencies.)