India's Direct Tax Collections See Robust Growth

India's direct tax collections have experienced a significant surge, growing by 15.59% year-on-year to reach Rs 27.02 lakh crore in the financial year 2024-25, according to data released by the Central Board of Direct Taxes (CBDT). This marks a substantial increase from Rs 23.38 lakh crore in the previous fiscal year.

Key Drivers Behind the Growth

The growth in collections is attributed to higher revenues from both corporate and non-corporate taxes, alongside a notable increase in securities transaction tax (STT) receipts. Corporate tax collections rose to Rs 12.72 lakh crore, up from Rs 11.31 lakh crore, while non-corporate tax collections surged to Rs 13.73 crore from Rs 11.68 lakh crore. STT collections also saw a sharp increase, reaching Rs 53,296 crore compared to Rs 34,192 crore the previous year.

Impact on India's Fiscal Health

This rise in tax collections is a positive indicator for India's fiscal health, strengthening the government's revenue base and reducing reliance on borrowing. It reflects economic resilience in the face of global uncertainties and may enable increased public spending on infrastructure and social welfare, further stimulating economic growth.

After accounting for refunds, which increased by 26.04% to Rs 4.76 lakh crore, the net direct tax collection stood at Rs 22.26 lakh crore, a 13.57% increase from the previous year.