India’s direct tax collections for the financial year 2024-25 have witnessed a 13.13% year-on-year (YoY) increase, reaching ₹21.26 lakh crore as of March 16, 2025, according to data released by the Income Tax Department. The robust growth in tax collections is indicative of strong economic activity and improved tax compliance.
Breakdown of Direct Tax Collections
- Gross Direct Tax Collections: ₹25.86 lakh crore, reflecting a 16.15% YoY growth.
- Refunds Issued: ₹4.60 lakh crore, a 32.51% increase compared to the previous year.
- Net Direct Tax Collections: ₹21.26 lakh crore, up 13.13% YoY after adjusting for refunds.
Component-wise Tax Collection Growth
- Corporate Tax (CT) Collection: ₹9.69 lakh crore, an increase from ₹9.04 lakh crore in the previous year.
- Non-Corporate Tax (NCT) Collection: ₹11.01 lakh crore, up from ₹9.37 lakh crore.
- Securities Transaction Tax (STT): ₹53,095 crore, significantly higher than last year’s ₹34,131 crore.
- Other Taxes: ₹3,340 crore, marginally lower than last year’s ₹3,566 crore.
Advance Tax Collections Exhibit Strong Growth
Advance tax collections, a key indicator of corporate and individual taxpayer confidence, rose by 14.62% YoY, amounting to ₹10.44 lakh crore. Corporate taxpayers contributed ₹7.57 lakh crore, while non-corporate taxpayers paid ₹2.87 lakh crore in advance tax.
The rise in tax collections suggests sustained economic momentum, better compliance measures, and increased profitability across sectors. With the Indian economy maintaining strong growth, tax revenues are expected to remain on an upward trajectory for the remainder of the fiscal year.
