Record Refunds and Robust Growth: The 2024-25 Direct Tax Collection Performance

The net direct tax collection for the 2024-25 fiscal grew by 13.57% to over Rs 22.26 lakh crore, slightly missing revised targets. The growth occurred despite record refunds of Rs 4.76 lakh crore, a 26.04% increase. Corporate and non-corporate taxes showed notable growth, with tax buoyancy at 1.57.

The net direct tax collection for the 2024-25 fiscal year increased by 13.57% to more than Rs 22.26 lakh crore, according to official data released on Friday. Despite missing the revised target, this growth was achieved while delivering the highest-ever refunds, marking a milestone in tax performance.

Initially, the government had set a target of Rs 22.07 lakh crore for direct taxes, which was later revised to Rs 22.37 lakh crore. Direct taxes cover contributions from corporate and non-corporate entities, including individuals and other legal entities. The gross collection for the year ended March 31 was Rs 27.02 lakh crore, a 15.59% increase compared to the previous fiscal.

The tax department issued a record Rs 4,76,743 crore in refunds, a 26.04% rise from the previous fiscal's refunds. Officials noted that the department achieved high collection numbers while maintaining commitments to transparency and fairness in processing taxpayers' refunds and claims.

(With inputs from agencies.)