India's Direct Tax Collection Surges by 18.35% in FY 2024-25

India's net direct tax collections have significantly increased by 18.35% to INR 11.26 lakh crore as of October 10 for FY 2024-25. The growth is driven by a substantial rise in the Securities Transaction Tax and corporate tax collections, signaling robust investor activity and economic strength.

India's net direct tax collection for the fiscal year 2024-25 has witnessed a remarkable surge of 18.35%, totaling INR 11.26 lakh crore, according to the latest data from the Central Board of Direct Taxes (CBDT) as of October 10. The gross direct tax collection also saw an impressive growth of 22.30%, amounting to INR 13.57 lakh crore during the same period.

During this time, refunds amounting to INR 2.31 lakh crore were issued, marking a significant 46% increase. A major contributor to this remarkable growth has been the Securities Transaction Tax (STT), which almost doubled to INR 30,630 crore from INR 16,373 crore in 2023. This rise in STT reflects increased investor participation in the equity markets.

Corporate tax revenue also played a significant role, with collections reaching INR 6.11 crore, up from last year's INR 5.11 crore. Gross personal income tax collections surged to INR 7.13 lakh crore from INR 5.79 lakh crore, while the net collection stood at INR 5.98 lakh crore. Overall, direct tax collections in FY 2024-25 have demonstrated a robust upward trajectory across various segments.

(With inputs from agencies.)