India’s net direct tax collections surge 15.4% to Rs 12.1 lakh crore in April-Nov
India’s net direct tax collections, comprising corporate tax and personal income tax, surged by a robust 15.4% to Rs 12.1 lakh crore from April 1 to November 10 during the current financial year, according to the latest figures released by the Central Board of Direct Taxes (CBDT).
On a gross basis, direct taxes increased by over 21% to Rs 15 lakh crore during the period. The government issued tax refunds totaling Rs 2.9 lakh crore, marking a 53% increase over the same period last year.
Net corporate tax collections stood at Rs 5.10 lakh crore, while non-corporate taxes, such as Rs 6.62 lakh crore paid by individuals, HUFs, and firms, contributed significantly.
A total of Rs 35,923 crore was collected from other taxes, including the Equalisation Levy and gift tax.
The government has set a target to collect Rs 22.12 lakh crore from direct taxes during 2024-25, representing a 13% increase over the corresponding figure for the previous financial year.
The double-digit surge in tax collections reflects the strong fiscal position of the country, driven by robust economic growth. It also follows the high growth in 2023-24, when net direct tax collections exceeded the Union Budget estimates by Rs 1.35 lakh crore, or 7.4%.
The target for direct tax collections was initially set at Rs 18.23 lakh crore in the Union Budget for 2023-24 and later revised to Rs 19.45 lakh crore in the Revised Estimates (RE). Provisional direct tax collections (net of refunds) have exceeded the budget estimate by 7.4% and the revised estimate by 0.67%, the CBDT said.
The buoyancy in tax collections provides the government with more funds to invest in large infrastructure projects to spur economic growth and support welfare schemes for the poor.
It also helps keep the fiscal deficit in check, strengthening the macroeconomic fundamentals of the economy. A lower fiscal deficit means the government has to borrow less, leaving more money in the banking system for big companies to borrow and invest. This, in turn, leads to higher economic growth and more job creation.
A low fiscal deficit also helps keep inflation in check, imparting stability to the economy.
