India’s economy is showing signs of robust growth, as reflected in the substantial increase in direct tax collections during the financial year 2024-25. Up until September 17, net direct tax collections have surged by 16.12% to cross an impressive Rs 9.95 lakh crore. This growth is being driven by both personal income tax (PIT) and corporate tax contributions, showing the country’s expanding economic base.
Growth in Personal and Corporate Taxes
Between April 1 and September 17, personal income tax collections witnessed a remarkable growth of 19%, reaching Rs 5.15 lakh crore. Corporate tax collections also rose by 10.55%, amounting to more than Rs 4.52 lakh crore. These figures demonstrate the strength of individual earnings and business profits in the current fiscal year.
Significant Increase in Tax Refunds
A noteworthy trend this year has been the significant rise in tax refunds. So far, over Rs 2.05 lakh crore in refunds have been issued, marking a 56.49% increase compared to the same period last year. This indicates improved efficiency in tax processing and refund issuance, ensuring faster returns for taxpayers.
Securities Transaction Tax and Advance Tax Collections
Securities Transaction Tax (STT) revenue stood at Rs 26,154 crore during the same period, contributing to the overall tax collection growth. Meanwhile, advance tax collections, a strong indicator of business confidence and future growth, saw an increase of 22.61%, reaching Rs 4.36 lakh crore.
Notably, PIT advance tax collection saw a sharp rise of 39.22%, while corporate tax advance collections grew by 18.17%. This reflects the growing economic activity and income levels, both in personal and corporate sectors.
Target for the Fiscal Year 2024-25
The Indian government has set a target of collecting Rs 22.12 lakh crore in direct taxes for the entire fiscal year 2024-25. This target is 13% higher than the previous year, showcasing the government’s confidence in the economy’s continued expansion. With the current growth trajectory, the target seems achievable, supported by robust collections in both personal and corporate taxes.
Bihar’s Impressive GST Growth
Bihar has also shown strong performance in tax collections. The state’s Commercial Tax Department has collected Rs 15,463 crore in GST by August 31, marking an 8.4% growth over the previous year. The state is now among the top five in GST collections nationwide, reflecting its growing economic strength.
Bihar’s GST collections have seen substantial growth over the years, with total collections in FY 2023-24 reaching Rs 38,198 crore, a significant rise from the Rs 17,236 crore collected in FY 2017-18. The state has set an ambitious target of Rs 42,500 crore in GST collections for the current fiscal year, further positioning itself as a strong contributor to national revenues.
