Record Growth in Direct Tax Collections

India's gross direct tax collections witnessed a significant increase of 15.6%, surpassing Rs 27 lakh crore in the last fiscal year. Refunds also saw a notable rise of 26%, reaching an unprecedented high of nearly Rs 4.8 lakh crore, according to provisional data from the finance ministry.

Meeting Fiscal Targets

The provisional net direct tax collection, which increased by 13.6% to just under Rs 22.3 lakh crore, aligned with the 2024-25 financial year's objectives. These collections achieved 100.8% of the budget target and 99.5% of the revised estimate presented in February.

Impact on Fiscal Deficit

The combined data on direct and indirect taxes, along with anticipated savings on expenditures, suggest that the government may conclude the year with a fiscal deficit better than initially budgeted. The revised estimates indicated a fiscal deficit of 4.8% of GDP, slightly below the budget estimate of 4.9%.

Income Tax vs Corporation Tax

Income tax collections rose by 17.6% to Rs 13.7 lakh crore, while corporation tax collections grew by 12.4% to Rs 12.7 lakh crore, widening the gap between these two primary sources of direct taxes.

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