India's Direct Tax Collections See 24% Surge in 2024 with Record ITR Filings

India's gross direct tax collections climbed 24% in 2024, while net collections rose 22.5%, according to the CBDT. A record 7.28 crore ITRs were filed by July 31, demonstrating increased taxpayer compliance. An overwhelming 72% of taxpayers opted for the New Tax Regime in 2024.

India's gross direct tax collections have surged by 24% on a yearly basis, reaching Rs 8.13 lakh crore so far in 2024, revealed data from the Central Board of Direct Taxes (CBDT) on Monday. Last year, during the same period, the gross tax collections stood at Rs 6.55 lakh crore. On the other hand, the net direct tax collections have risen 22.5%, amounting to Rs 6.92 lakh crore from Rs 5.65 lakh crore.

Refunds for the period have also seen a significant rise, growing by 33.5% to Rs 1.2 lakh crore from Rs 90,028 crore. The direct taxes covered in the report include corporate tax, personal income tax, securities transaction tax, equalization levy, and several other specific taxes.

Tax compliance has hit a new high, with a record 7.28 crore Income-tax Returns (ITRs) filed by July 31, 2024, the last due date for submission. This marks a 7.5% increase from the previous year's total of 6.77 crore ITRs. A noticeable shift was observed with 72% of taxpayers opting for the New Tax Regime this year, compared to 2.01 crore in the Old Tax Regime. On the peak filing day, July 31, 2024, over 69.92 lakh ITRs were submitted. The Finance Ministry has urged taxpayers to verify their ITRs within 30 days of filing and to file any pending returns promptly.

(With inputs from agencies.)