India’s direct tax collection has increased by 19.54% in Fiscal Year 2024–25 to reach Rs 5.74 lakh crore.

According to figures released by the income tax department, the government’s net direct tax collection increased significantly in the fiscal year 2024–2025, reaching a total of Rs 5,74,357 crore by July 11.

Net direct tax revenue for the previous year was Rs 4,80,458 crore. This indicates a significant increase in direct tax revenue over the course of a year. In addition, the total amount of refunds given out in FY 2024–25 was Rs 70,902 crore, a notable increase of 64.49 percent over the year before.

The government issued tax refunds totaling Rs 43,105 crore in FY 2023–2024. The rise in tax refunds is evidence of how effectively the government handles taxpayer requests and gives them timely relief.

According to the data, there was a 23.24 percent increase in total gross direct tax collection by July 11 of the financial year 2024–25 as compared to the same period in the previous fiscal year, 2023–2024.

The data showed that, compared to the Rs 5,23,563 crore collected during the same period in FY 2023–2024, the gross direct tax collection during the current financial year up to July 11 stood at Rs 6,45,259 crore.

Corporate tax, income tax, and securities tax are examples of direct taxes, which are levied directly on people and organizations according to their income or wealth.

When the various elements of direct taxes are broken down, remarkable growth rates are found everywhere.

Compared to the previous year’s Rs 2,20,297 crore, the corporation tax revenue in FY 2024–25 increased by 20.44 percent to Rs 2,65,336 crore. This rise is a result of increased business profitability and compliance.
In a similar vein, there has been a noticeable increase in personal income tax revenues. The collection reached Rs 3,61,862 crore by July 11, FY 2024–25, up 22.76 percent from Rs 2,94,764 crore in FY 2023–24. The rise in personal income tax is a sign of rising individual incomes and efficient tax collection systems.

In addition, the securities tax increased by more than double in the current fiscal year, rising from Rs 7,285 crore in the previous fiscal year to Rs 16,634 crore. The share market’s higher trading volume and heightened activity are to blame for this spike.

In general, the direct tax collections during the fiscal year 2024–2025 demonstrated a trajectory of positive increase in all tax categories.