India’s net direct tax collection, after adjusting for refunds, increased by 22.5% to ₹6.93 trillion from April 1 to August 11 in FY25. During the same period last year, the collection stood at ₹5.65 trillion, as per the latest data from the Income Tax Department released on Monday.
Personal income tax (PIT) collections surpassed corporation tax, with PIT amounting to ₹4.47 trillion (net), compared to ₹3.44 trillion in the corresponding period of the previous year.
Corporation tax was reported at ₹2.2 trillion, a growth of 5.7%, which falls short of the 12% growth target set for this fiscal year.
Direct taxes, which include PIT and corporation tax, saw securities transaction tax—a component of PIT—soar to ₹21,599 crore from ₹10,234 crore a year earlier, likely due to changes in tax rates and an uptick in stock market activity.
The gross collection before refunds reached ₹8.13 trillion, a 23.99% increase from the last financial year, according to the tax department.
Direct tax refunds issued by the government totalled ₹1.20 trillion up to August 11, marking a 33.49% rise from ₹90,028 crores in the same period in FY24.
The government’s target for gross tax revenue in FY25 is ₹38.40 trillion, as stated in the Budget, with direct taxes expected to contribute ₹22.07 trillion and indirect taxes ₹16.33 trillion.
Net direct tax collection for FY24 was ₹19.58 trillion, 17.1% higher than the previous year, surpassing the estimates by ₹13,000 crore. In FY23, the direct tax collection was ₹16.64 trillion, and in FY22, it was ₹14.08 trillion.
