India’s Direct Tax Collections Surge 22.5% to ₹6.93 Lakh Crore in FY 2024-25

GG News Bureau
New Delhi, 14th August. India’s net direct tax collection has surged by 22.5% to ₹6.93 lakh crore for the financial year 2024-25, from April 1 to August 11, signaling strong fiscal consolidation. This increase includes ₹4.47 lakh crore from Personal Income Tax (PIT) and ₹2.22 lakh crore from Corporate Tax.

Additional collections include ₹21,599 crore from Securities Transaction Tax (STT) and ₹1,617 crore from other taxes such as equalisation levy and gift tax. Refunds issued during the period amounted to ₹1.20 lakh crore, reflecting a 33.49% rise.

On a gross basis, direct tax collections reached ₹8.13 lakh crore, with PIT contributing ₹4.82 lakh crore and Corporate Tax ₹3.08 lakh crore. Gross PIT collections showed a significant increase from ₹3.91 lakh crore in the same period last year.

The government’s fiscal strategy, as outlined in the Union Budget 2024-25, targets a fiscal deficit of 4.9% of GDP, supported by robust tax collections and substantial GST revenue. July saw GST collections surpass ₹1.82 lakh crore, with a net collection of over ₹1.66 lakh crore.

Finance Minister Nirmala Sitharaman emphasized that reduced government borrowings, estimated at ₹14.01 lakh crore in gross and ₹11.63 lakh crore in net terms, will enhance liquidity in the banking system, promote investment, and create jobs.

The budget also projects total receipts at ₹32.07 lakh crore and total expenditure at ₹48.21 lakh crore, with net tax receipts estimated at ₹25.83 lakh crore. The Finance Minister aims to reduce the fiscal deficit to below 4.5% next year.