Corporate Tax Boost Drives 7% Growth in Net Direct Tax Collection

The net direct tax collection for the fiscal year has increased by 7% to over Rs 12.92 lakh crore, driven by higher corporate tax collection and less refund issuance. Corporate tax collection rose to Rs 5.37 lakh crore, while non-corporate tax collection reached Rs 7.19 lakh crore.

The net direct tax collection for the current fiscal year has surged by 7%, surpassing Rs 12.92 lakh crore. This growth is primarily attributed to an uptick in corporate tax revenues and a reduction in refund issuances.

Refunds have decreased by 18% to over Rs 2.42 lakh crore between April and November. Corporate tax collections have notably risen to Rs 5.37 lakh crore from Rs 5.08 lakh crore in the previous year, while non-corporate tax collections, which include individuals and Hindu Undivided Families (HUFs), have increased to Rs 7.19 lakh crore.

Securities Transaction Tax (STT) collection saw a minor decrease, reflecting the stock market's stable performance despite IPO expansion potential. Expert insights suggest the maintained pace of non-corporate tax collection post-rate cuts is indicative of rising income levels.

(With inputs from agencies.)