New Delhi, Feb 11 (IANS) India’s net direct tax collection, comprising mainly corporate tax and personal income tax, jumped by 14.69 per cent to cross the Rs 17.78 lakh crore mark as of February 10 in the current financial year compared to 15.51 lakh crore in the same period of 2023-24, according to a data released by the Central Board of Direct Taxes (CBDT) on Tuesday.
The gross direct tax revenue surged by 19.06 per cent to surpass Rs 21.88 lakh crore from Rs 18.38 lakh crore in the same period of 2023-24, the figures showed.
The revenue from net non-corporate taxes, which comprises mainly personal income tax, surged by 21 per cent year-on-year to Rs 9.48 lakh crore during this period.
Net corporate tax collection rose more than 6 per cent to over Rs 7.78 lakh crore between April 1, 2024, and February 10, 2025.
Net collections from securities transaction tax (STT), which also form part of direct taxes, shot up by 65 per cent to Rs 49,201 crore so far in the current financial year.
Refunds worth more than Rs 4.10 lakh crore were also issued during the period, a 42.63 per cent increase against the year-ago period.
According to senior officials, this underscores the increasing efficiency of the Income Tax Department in making refunds to taxpayers.
The robust double-digit increase in direct tax collections reflects the increase in corporate profits in a growing economy and rising incomes as more upscale jobs are being created in the manufacturing and services sectors.
The buoyancy in tax collections strengthens the macroeconomic fundamentals of the economy with the government raising more funds to undertake investments in large infrastructure projects to spur economic growth and take up welfare schemes for the poor.
It also helps to keep the fiscal deficit in check. A lower fiscal deficit means the government has to borrow less which leaves more money in the banking system for big companies to borrow and invest. This in turn leads to a higher economic growth rate and the creation of more jobs.
Besides, a low fiscal deficit keeps inflation in check which helps to ensure growth with stability in the economy.
–IANS
sps/uk
