NEW DELHI: Net direct tax collections in 2024-25 (till 16 March 2025) have jumped 13% to Rs 21.26 lakh crore compared to Rs 18.80 lakh crore in the same period previous year, largely driven by strong growth in personal income tax collections. The government expects the full year collection from direct taxes at Rs 22.4 lakh crore.
Personal income tax collections during the period in the current financial year showed a growth of 17.5% to Rs 11.01 lakh crore, while corporate tax collections continue to grow at a slower pace at just over 7%. For FY25, the revised target is to collect Rs 12.57 lakh crore from personal income taxes, and Rs 9.8 lakh crore from corporate taxes.
Securities Transaction Tax (STT), which is collected from sale and purchase of equities, grew at a remarkable rate of 55.6% during the period to Rs 53,095 crore. For the current financial year, the government hopes to collect Rs 55,000 crore through STT.
Rohinton Sidhwa, partner, Deloitte India, says, the tax collection trend shows an increasing reliance and growth on personal taxes as opposed to corporate income tax.
“The revised collection continues to show a healthy uptick in personal and Securities Transaction Tax (STT), while the revised estimate for corporation tax was revised downwards from 10.2 lakh crore to 9.8 lakh crore,” says Sidhwa.
It must be noted that the government has announced a major overhaul in the income tax rates and thresholds, which would lead to an estimated Rs 1 lakh crore loss of revenue. The new rates will be applicable in the new financial year (FY25). Yet the government has set a 14% higher target for collection from personal income tax in FY25.