More Money In Govt's Kitty! Direct Tax Collections Soar 15.6% To Touch Rs 27 Lakh Crore - Details

The direct tax collections of the India has witnessed robust growth of 15.59% year-on-year (YoY), to reach Rs 27.02 lakh crore in the financial year 2024-25 as against Rs 23.38 lakh crore in 2023-24, data released by the Central Board of Direct Taxes (CBDT) illustrated.

Why Has India's Direct Tax Collection Soared?

This rise in the collection of direct tax is due to higher corporate and non-corporate tax revenues, as well as a significant surge in securities transaction tax (STT) receipts.

The collection of corporate tax rose to Rs 12.72 lakh crore from Rs 11.31 lakh crore in the last fiscal.

Non-corporate tax collections also surged to Rs 13.73 crore from Rs 11.68 lakh crore in the last financial year.

STT collections observed a sharp rise reaching Rs 53,296 crore as against Rs 34,192 crore in the previous year.

What Are Direct Taxes?

Direct taxes are the taxes that individuals and businesses pay directly to the government. These include income tax, Corporate Tax, and Securities transaction tax.

Other taxes including wealth tax declines from Rs 4,068 crore to Rs 3,366 crore.

Rising tax collections is a positive sign  for the fiscal health of the country, as it strengthens the government's revenue base and reduces dependence on borrowing.

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