Net direct tax collections rise 16.5%

With a little over three months left in 2024-25, India’s net direct tax collections were up 16.5%, crossing ₹15.82 lakh crore by December 17, with non-corporate taxes leading the growth.

Net corporate tax receipts were up just 8.6% to close to ₹7.43 lakh crore, while net collections from non-corporate taxes rose at almost thrice the pace at 22.5% to ₹7.97 lakh crore, surpassing the corporate receipts. At the same juncture of last year, corporate taxes accounted for more contributions to the exchequer than non-corporate entities, which include individuals, Hindu Undivided Families or HUFs, and associations of persons, local authorities, and artificial juridical persons.

Data shared by the Central Board of Direct Taxes on Wednesday showed that gross tax receipts had grown 20.3% so far this year to cross ₹19.21 lakh crore, with corporate taxes rising 16.9% and non-corporate receipts up 22%.

With stock market volumes holding up despite some tumult in valuations in recent months, receipts from the Securities Transaction Tax (STT) were up a sharp 85.5% to over ₹40,100 crore.

Refunds were up 42.5% by December 17 to nearly ₹3.39 lakh crore, with corporate tax refunds surging 70.3% and non-corporate taxpayers seeing a relatively lower 19.8% uptick in refunds. Advance tax collections had risen 20.9% to over ₹7.56 lakh crore from ₹6.25 lakh crore a year ago, but a similar pattern emerged on this front with corporate taxes growing 16.7%, less than half the 35% increase in non-corporate receipts. In 2023-24, net direct tax revenues had risen 17.7% to ₹19.58 lakh crore, with Personal Income Tax (PIT) share rising to 53.3% from 50.06% in the previous year. Recently, the government stopped sharing data with the PIT nomenclature, calling the category non-corporate taxes instead.

Other taxes, that include Equalization Levy, Fringe Benefit Tax, Wealth Tax, Banking Cash Transaction Tax, Hotel Receipt Tax, Interest Tax, Expenditure Tax, Estate Duty and Gift Tax, rose a mere 5.9% from a year ago.