Record-Breaking Growth in Direct Tax Collections

In an unprecedented financial achievement, India's direct tax collections have surged by nearly 20%, amassing a staggering Rs 20.6 lakh crore by January 12 of the fiscal year. This remarkable growth is attributed to a significant increase in non-corporate tax revenues, which have outpaced corporation tax collections.

Breakdown of Tax Collections

According to the latest data from the Central Board of Direct Taxes, corporation tax collections have risen by 16.5% to Rs 9.7 lakh crore, whereas non-corporate tax collections, including personal income tax, have seen a 21.7% increase, reaching just under Rs 10.5 lakh crore. Additionally, securities transaction tax (STT) collections have experienced a dramatic 75% jump, totaling Rs 44,538 crore from April 2024 to January 12.

Fiscal Deficit Target on Track

With the government's budget aiming for over Rs 22 lakh crore from income and corporation tax this fiscal year, the strong direct tax collections, despite a slight slowdown in GST growth, indicate a robust financial health. The government's fiscal deficit target of 4.9% of GDP remains achievable, thanks to lower-than-expected spending and on-course tax collections.