As of March 16 of the current financial year, net direct tax collections have surged by 13.13% to ₹21.3 trillion, driven by a rise in advance tax collections, according to the Income-Tax Department.
Compared to ₹9.11 trillion the year before, advance tax receipts in the current fiscal year have increased by 14.6% to ₹10.4 trillion thus far. March 15 was the deadline for the fourth instalment of the advance tax payment.
Tax experts mentioned that the rise in tax revenue is kept by digitalization, improved compliance, simplification of tax laws, and industrial growth.
Over 4,000 listed corporates disclosed revenue growth of 6.2 per cent, with Ebitda and PAT increasing by 11 per cent and 12 per cent, respectively, in Q3FY25 compared to the same quarter in the previous year.
From the net direct tax collections, a non-corporate tax that contains taxes paid by individuals, Hindu Undivided Families (HUFs), firms, bodies of individuals, associations of persons, local authorities, and artificial judicial persons raised at a robust 17.5 per cent Y-o-Y to ₹11.01 trillion.
In the same period, the corporate tax has increased at a slower speed of 7.1% to Rs 9.69 trillion. The securities transaction tax (STT) surged 55.5 per cent to ₹53,095 crore.
During the period Gross direct tax collections rose 16.15 per cent to ₹25.9 trillion while refunds rose 32.5 per cent to ₹4.6 trillion.
In advance tax collections, the corporate tax increased 12.5 per cent to ₹7.6 trillion, and the non-corporate tax was up 20.5 per cent to ₹2.9 trillion, as per the data.
For FY 2024-25, the government aims to collect ₹38.53 trillion in gross tax revenue (revised estimates), with ₹22.37 trillion from direct taxes and ₹16.16 trillion from indirect taxes.
In the previous financial year (2023-24), the net direct tax revenue of the centre was ₹19.6 trillion after accounting for refunds, contemplating a growth rate of 17.7 per cent.
