Tax Collection Defies Challenges: 2024-25 Analysis

The net direct tax collection for the fiscal year 2024-25 almost hit its target despite surpassing previous records in refunds. Growth in corporate and non-corporate taxes, alongside a rise in Securities Transaction Tax, helped achieve a 13.57% growth rate, summing up to Rs 22.26 lakh crore.

The fiscal year 2024-25 witnessed a near-target achievement in net direct tax collection, despite the issuance of an unprecedented volume of refunds. Totaling Rs 22.26 lakh crore, collections grew by 13.57% as per official reports on Friday.

Initially set at Rs 22.07 lakh crore in July 2024, the target was revised to Rs 22.37 lakh crore in February. The remarkable growth in corporate, non-corporate taxes, and the Securities Transaction Tax indicate a robust tax revenue collection system.

Significantly, the tax department issued record refunds worth Rs 4.76 lakh crore for 2024-25. This commitment to honoring taxpayer claims transparently contributed to a budget achievement of over 100% and maintained excellent growth rates across varied tax categories.

(With inputs from agencies.)