Record 21% Increase in Net Direct Tax Collection, Boosts Indian Economy

Net direct tax collection in India has surged by 21% to over Rs 4.62 lakh crore this fiscal, driven by higher advance tax payments by corporations. The first instalment of advance tax showed a 27.34% increase. Total direct tax collections, including Corporation and Personal Income Tax, have seen robust growth.

In a significant development, India's net direct tax collection has surged by 21%, reaching over Rs 4.62 lakh crore so far this fiscal year, attributed to higher advance tax payments by corporations. The first instalment of advance tax, due on June 15, recorded a 27.34% rise to Rs 1.48 lakh crore, according to the Central Board of Direct Taxes (CBDT).

The net collection of Rs 4,62,664 crore, as reported on June 17, 2024, includes Corporation Income Tax (CIT) of Rs 1,80,949 crore and Personal Income Tax (PIT), including Securities Transaction Tax, of Rs 2,81,013 crore. Additionally, refunds totaling Rs 53,322 crore have been issued in the fiscal year 2024-25 until June 17, marking a 34% increase over the same period in the previous year.

Industry experts such as Deloitte India Partner Rohinton Sidhwa and Shardul Amarchand Mangaldas & Co Partner Gouri Puri attribute this growth to the formalization and digitalization of the Indian economy, leading to higher tax compliance rates.

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