Direct Tax Collections Rise To Rs 21.3 Trn

Tue, 18 March 2025

09:17

Net direct tax collections rose by a robust 13.13 per cent to Rs 21.3 trillion as of March 16 of the current financial year, boosted by a jump in advance tax collections, according to the latest data released by the Income-Tax department on Monday.

Advance tax collections so far in the current financial year grew by 14.6 per cent to Rs 10.4 trillion, up from Rs 9.11 trillion in the previous year. The fourth instalment of advance tax payment was due on March 15.

The rise in tax revenue is supported by digitalisation, improved compliance, simplification of tax laws, and industrial growth," Aseem Mowar, tax partner at EY India, said.

"Over 4,000 listed corporates disclosed revenue growth of 6.2 per cent, with Ebitda and PAT growing by 11 per cent and 12 per cent, respectively, in Q3FY25 compared to the same quarter in the previous year, Mowar added.

Of the net direct tax collections, non-corporate tax -- which includes taxes paid by individuals, Hindu Undivided Families (HUFs), firms, bodies of individuals, associations of persons, local authorities, and artificial judicial person -- grew at a robust 17.5 per cent Y-o-Y to Rs 11.01 trillion.

Corporate tax, during the same period, surged at a slower pace of 7.1 per cent to Rs 9.69 trillion. The securities transaction tax (STT) grew 55.5 per cent to Rs 53,095 crore (Rs 530.95 billion).

Gross direct tax collections during the period grew 16.15 per cent to Rs 25.9 trillion while refunds increased 32.5 per cent to Rs 4.6 trillion.

In advance tax collections, while corporate tax grew 12.5 per cent to Rs 7.6 trillion, non-corporate tax was up 20.5 per cent to Rs 2.9 trillion, according to the data.

The government is targeting a total gross tax revenue of Rs 38.53 trillion (revised estimates) for FY25. This includes a goal of Rs 22.37 trillion from direct taxes and Rs 16.16 trillion from indirect taxes.

In the previous financial year (2023-2024), the Centres net direct tax revenue was Rs 19.6 trillion after accounting for refunds, reflecting a growth rate of 17.7 per cent.

Monika Yadav, Business Standard

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