India’s net direct tax collection rises 22% to ₹6.93 lakh cr
ADVERTISEMENT
India's net direct tax collection increased by 22.48% to ₹6.93 lakh crore between April 1 and August 11 of FY25, up from ₹5.65 lakh crore during the same period last year, according to data released by the Income Tax (I-T) Department on Monday.
Personal income tax (PIT) showed stronger growth than corporate tax, with net PIT reaching ₹4.47 lakh crore compared to ₹3.44 lakh crore in the same period last year. Meanwhile, net corporate tax was ₹2.22 lakh crore as of August 2024, up from ₹2.10 lakh crore a year ago—a 5.7% increase.
Gross tax collection before refunds was ₹8.13 lakh crore, reflecting a 23.99% increase over the previous fiscal year’s collection of ₹6.55 lakh crore. Direct taxes, which include gross PIT of ₹4.82 lakh crore and gross corporate tax of ₹3.08 lakh crore and a contribution from the securities transaction tax (part of PIT), which surged to ₹21,599 crore as on August 2024, up from ₹10,234 crore in the previous year.
The government issued direct tax refunds totaling ₹1.20 lakh crore as of August 11, marking a 33.49% increase from the ₹90,028 crore issued during the same period in FY24.
For FY25, the government aims to collect a gross tax revenue of ₹38.40 lakh crore, with targets of ₹22.07 lakh crore from direct taxes and ₹16.33 lakh crore from indirect taxes. In FY24, net direct tax collection was ₹19.58 lakh crore, a 17.70% increase from the previous year, exceeding estimates by ₹13,000 crore. In FY23, the collection was ₹16.64 lakh crore, up from ₹14.08 lakh crore in FY22.
October 2025
As India’s growth story gains momentum and the number of billionaires rises, the country’s luxury market is seeing a boom like never before, with the taste for luxury moving beyond the metros. From high-end watches and jewellery to lavish residences and luxurious holidays, Indians are splurging like never before. Storied luxury brands are rushing in to satiate this demand, often roping in Indian celebs as ambassadors.
In April, it was reported that in FY 2023-24, India's net direct tax collections grew by 17.7%, reaching ₹19.58 lakh crore, up from ₹16.64 lakh crore in the preceding financial year, FY 2022-23.
"The BE (Budget Estimates) for direct tax revenue in the Union Budget for 2023-24 were set at ₹18.23 lakh crore, which were revised to ₹19.45 lakh crore RE (Revised Estimates). The provisional direct tax collections [net of the refunds] have exceeded the BE by 7.40% and RE by 0.67%," the finance ministry says.
Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.