NewKerala.com

Direct Tax Collections Rise 7.19% to Rs 22.80 Lakh Crore in FY25

India's net direct tax collections have increased by 7.19% to reach Rs 22.80 lakh crore, according to provisional data. The collections comprise corporate tax, non-corporate tax, and securities transaction tax, with advance tax also showing a 6.42% rise. The growth rate is moderated by recent tax concessions for the middle class, including an increased exemption limit. These measures aim to boost household consumption and savings to stimulate broader economic growth.

Key Points: Direct Tax Collections Up 7.19% to Rs 22.80 Lakh Crore

  • Net collections at Rs 22.80 lakh crore
  • Corporate tax robust at Rs 10.91 lakh crore
  • Advance tax up 6.42%
  • Refunds issued Rs 4.35 lakh crore
2 min read

Direct tax collections up 7.19 pc at Rs 22.80 lakh crore

India's net direct tax collections grow 7.19% to Rs 22.80 lakh crore, with corporate tax showing robust growth. Advance tax also rises.

"The lower increase reflects the tax concessions announced in the Budget for 2025-26 for the middle class - Income Tax Department"

New Delhi, March 18

Net direct tax collections went up 7.19 per cent to Rs 22.80 lakh crore, according to the latest provisional data released by the Income Tax Department on Wednesday.

It includes net corporate tax of Rs 10.91 lakh crore, non-corporate tax of Rs 11.32 lakh crore and securities transaction tax (STT) of Rs 55,717 crore, the data showed.

STT collections increased to nearly Rs 55,717 crore from Rs 53,095 crore a year ago, while other taxes dropped to nearly Rs 365 crore from about Rs 3,400 crore.

Notably, advance tax collections went up 6.42 per cent to Rs 11.13 lakh crore. Refunds issued during the period stood at Rs 4.35 lakh crore.

Before adjusting for refunds, gross direct tax collections stood at about Rs 27.15 lakh crore (as of March 17), a 4.86 per cent year-on-year increase.

Meanwhile, the Central government's net direct tax collections had touched Rs 18.37 lakh crore between April 1 and January 11 of the current financial year (2025-26). The figure represented an 8.82 per cent increase over the next direct tax collections in the same period of the previous year.

Net corporate tax collections till January 11 stood at Rs 8.63 lakh crore, which represents a robust 12.41 per cent over the same period of the previous year.

The lower increase reflects the tax concessions announced in the Budget for 205-26 for the middle class, which exempted all those earning an income of Rs 12 lakh a year from paying tax. This limit works out to Rs 12.75 lakh for salaried taxpayers, due to the standard deduction of Rs 75,000.

The new structure was aimed to substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment to boost economic growth.

The limits for Tax Deducted at Source (TDS) have also been raised for various sections, such as on interest for senior citizens to Rs 1 lakh from Rs 50,000 and on rent to Rs 6 lakh annually from Rs 2.40 lakh.

- IANS

Share this article:

Reader Comments

P
Priya S
As a salaried professional, the increased exemption limit to ₹12.75 lakh is a huge relief! More money in hand means I can finally think about a bigger home loan EMI. This is a pro-middle class move that will boost consumption. Kudos!
R
Rahul R
The numbers look good on paper, but I have a respectful criticism. While corporate tax collection is up sharply, the growth in overall direct tax is only 7.19%. Does this mean the burden is shifting more onto companies rather than being broad-based? We need more taxpayers in the net for sustainable revenue.
S
Sarah B
The raised TDS limit for senior citizens' interest to ₹1 lakh is a thoughtful step. My parents were always worried about the paperwork for small refunds. This simplifies things for them. Small reforms that ease compliance are very welcome.
K
Karthik V
₹22.80 lakh crore is a massive amount! It's heartening to see the tax base expanding. But the government must ensure this translates into better roads, schools, and hospitals in smaller towns, not just metros. Transparency in spending is key.
N
Nisha Z
The increase in advance tax collections is a strong indicator of better tax compliance and forecasting. As a small business owner, the process has become smoother online. Hope the tax department continues to improve tech interfaces for all taxpayers.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50