Net direct tax collection rises 22% so far this fiscal

New Delhi: The central government’s direct tax collection has risen 22.48% so far this fiscal.
The government collected ₹6.92 trillion in direct taxes, after adjusting for refunds, as of 11 August, according to data released by the Central Board of Direct Taxes (CBDT). The net collection stood at ₹5.65 trillion during the corresponding period a year earlier.
Personal tax collection jumped 30% year-on-year to ₹4.47 trillion, while corporate taxes have risen 6% to ₹2.22 trillion. One of the highlights of direct taxes has been Securities Transaction Tax, which more than doubled over a year earlier to ₹21,599 crore.
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For FY25, the government targets a corporate tax mop-up of ₹10.2 trillion and personal income tax collection of ₹11.87 trillion.
The total direct tax collection before adjusting for refunds stood at ₹8.13 trillion so far this year, rising 22.19% from ₹6.55 trillion a year earlier, CBDT said.
Before adjusting for refunds, corporate taxes were at ₹3.08 trillion and personal income tax receipts stood at ₹4.81 trillion.
Personal income tax collections have outpaced corporate taxes in the last two years as incomes rose; government taxed dividends in the hand of the individual taxpayers, instead of companies; and authorities used technology to improve compliance.
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Other taxes have risen to ₹1,617 crore so far this fiscal from ₹1,383 crore in the previous financial year. These include equalization levy, fringe benefit tax, wealth tax, banking cash transaction tax, hotel receipt tax, interest tax, expenditure tax, estate duty and gift tax.
While presenting the union budget for FY25 in July, finance minister Nirmala Sitharaman had said the government would continue efforts to simplify taxes, improve taxpayer services, provide tax certainty and reduce litigation, while enhancing revenues for funding development and welfare schemes.
“58% of corporate tax came from the simplified tax regime in financial year 2022-23. Similarly, as per data available till now for the last fiscal, more than two-thirds have availed the new personal income tax regime,” she had said.
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