India’s Direct Tax Collections Surge 13.13%
India’s net direct tax collections have experienced a significant increase of 13.13%, reaching over ₹21.26 lakh crore for the current fiscal year, according to data released by the government on Monday. This impressive growth is primarily driven by a rise in advance tax collections, which totaled ₹10.44 lakh crore from four installments, marking a 14.62% increase compared to the previous fiscal year. The final installment of advance tax payment is due on March 15, 2025.
Breakdown of Advance Tax Collections
The surge in advance tax collections is categorized into corporate and non-corporate taxes. Corporate tax collections rose by 12.54%, amounting to ₹7.57 lakh crore. In contrast, non-corporate tax collections, which include personal income tax, saw a more substantial increase of 20.47%, totaling ₹2.87 lakh crore during the fiscal year. Under Section 208 of the Income Tax Act, individuals with an estimated tax liability exceeding ₹10,000 are required to pay advance tax, which applies to salaried individuals as well.
Advance tax payments are structured into four installments, which are due on June 15, September 15, December 15, and March 15 of the financial year. This structured approach allows taxpayers to manage their tax liabilities more effectively throughout the year.
Year-on-Year Growth in Non-Corporate Taxes
According to the Central Board of Direct Taxes (CBDT), net collections from non-corporate taxes, primarily personal income tax, have grown by 17% year-on-year, reaching approximately ₹11.01 lakh crore. This growth contrasts with corporate tax collections, which increased at a slower rate of 7%, totaling ₹9.69 lakh crore between April 1, 2024, and March 16, 2025. The disparity in growth rates highlights the increasing contribution of individual taxpayers to the overall tax revenue.
Significant Increase in Securities Transaction Tax
The fiscal year has also seen a remarkable rise in net collections from the Securities Transaction Tax (STT), which surged nearly 56% to reach ₹53,095 crore. This increase reflects a growing interest in the stock market and heightened trading activity among investors.
In terms of refunds, the government issued more than ₹4.60 lakh crore during this period, up from ₹3.47 lakh crore in the previous year. Gross direct tax collections up to March 16 have grown by 16.15%, totaling over ₹25.86 lakh crore.
Revised Estimates for Direct Tax Collections
The government has revised its income tax collection estimates for the current fiscal year to ₹12.57 lakh crore, surpassing the initial budget estimate of ₹11.87 lakh crore. Additionally, the STT collection estimate has been adjusted upward to ₹55,000 crore, from the previous budget estimate of ₹37,000 crore. However, the target for corporate tax collections has been lowered to ₹9.80 lakh crore, down from the original budget target of ₹10.20 lakh crore. Overall, the revised estimates for direct tax collections stand at ₹22.37 lakh crore, slightly above the budget estimate of ₹22.07 lakh crore.
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