New Delhi [India], June 18 (ANI): The Ministry of Finance has announced a robust growth in India’s direct tax collections for the financial year 2024-25, with net collections increasing by 20.99 per cent and gross collections growing by 22.19 per cent.
According to a press release by the Ministry of Finance, these figures underscore the country’s strong economic performance and a healthy tax compliance environment.
As per the provisional figures up to June 17, 2024, the net direct tax collections for FY 2024-25 have reached Rs 4,62,664 crore.
This marks a substantial rise from the Rs 3,82,414 crore collected during the corresponding period of the previous financial year, FY 2023-24.
The net collections include Corporation Tax (CIT) of Rs 1,80,949 crore and Personal Income Tax (PIT) along with Securities Transaction Tax (STT) totaling Rs 2,81,013 crore.
Gross direct tax collections, before accounting for refunds, have also shown a remarkable increase. The gross collections stand at Rs 5,15,986 crore, up from Rs 4,22,295 crore in the same period last year.
This represents a growth of 22.19 per cent, reflecting a significant uptick in both corporate and personal tax revenues. The gross collections are comprised of Rs 2,26,280 crore from CIT and Rs. 2,88,993 crore from PIT including STT.
A key indicator of economic health, advance tax collections have surged, amounting to Rs. 1,48,823 crore by mid-June 2024. This is a significant increase of 27.34 per cent compared to Rs. 1,16,875 crore collected during the same period in FY 2023-24.
The advance tax includes Rs. 1,14,353 crore from corporations and Rs. 34,470 crore from individual taxpayers, signaling strong corporate profitability and increased personal income levels.
The detailed breakdown of the tax collections is as follows: Tax Deducted at Source (TDS) stands at Rs. 3,24,787 crore, reflecting the widespread compliance and collection efficiency, read the press release.
Self-Assessment Tax is at Rs. 28,471 crore, indicating taxpayers’ proactive approach in managing their tax liabilities. Regular Assessment Tax accounts for Rs. 10,920 crore, representing taxes assessed and collected after regular assessment procedures.
Additionally, other minor heads cover Rs. 2,985 crore, which includes various other categories of direct taxes. In addition to the rise in tax collections, refunds totaling Rs. 53,322 crore have been issued in FY 2024-25 up to June 17.
This is an increase of 33.70 per cent over the refunds of Rs. 39,870 crore issued during the same period last year. The increase in refunds reflects the government’s commitment to ensuring timely and efficient processing of taxpayer claims, which is crucial for maintaining taxpayer confidence and compliance.
The strong performance in direct tax collections highlights the robust economic activities and improved tax administration in India.
The increase in both CIT and PIT collections points towards a growing corporate sector and higher income levels among individuals, contributing to the country’s fiscal health.
The surge in advance tax collections is particularly encouraging, as it suggests positive expectations about future income and profits among taxpayers.
It also indicates that businesses and individuals are experiencing growth and are willing to pay taxes in advance, reflecting their confidence in the economic outlook.
The Ministry of Finance’s data on refunds also highlights the effectiveness of the tax administration in processing claims and ensuring that excess taxes paid are returned promptly to taxpayers.
This efficiency is likely to enhance voluntary compliance and contribute to the overall buoyancy of the tax system.
The substantial growth in direct tax collections for FY 2024-25 signals a robust economic environment and effective tax administration in India. The increase in both gross and net collections, coupled with the rise in advance tax payments and timely issuance of refunds, reflects the overall health and stability of the Indian economy.
As the financial year progresses, these trends are expected to continue, further bolstering the nation’s fiscal strength and economic growth. (ANI)
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