India’s Direct Tax Collection Surges in 2024-25
As of October 10, 2024, India’s net direct tax collection for the financial year 2024-25 has increased by 18.35%, reaching nearly Rs 11.26 lakh crore, according to the Central Board of Direct Taxes (CBDT). The gross collection of direct tax grew by 22.30% to Rs 13.57 lakh crore. Refunds amounting to Rs 2.31 lakh crore were released, marking a 46% growth.
Key Contributors to the Growth
A significant factor in this growth is the Securities Transaction Tax (STT), which almost doubled to Rs 30,630 crore from Rs 16,373 crore in 2023. This indicates increased investor activity in the equity markets. STT is a tax on securities transactions through recognized stock exchanges in India.
Corporate and Personal Income Tax
Corporate tax collections rose to Rs 6.11 crore from last year’s Rs 5.11 crore. Gross personal income tax collections increased to Rs 7.13 lakh crore from Rs 5.79 lakh crore, with net collections at Rs 5.98 lakh crore.
Overall Growth
The direct tax net collection for FY 2024-25 saw a 21.48% increase, showing a positive growth trajectory across various tax categories, including corporate tax, income tax, and securities tax.
Doubts Revealed
Direct Tax -: Direct tax is the money that people and companies pay directly to the government. It includes taxes like income tax and corporate tax.
FY 2024-25 -: FY stands for Financial Year, which is a period used for accounting purposes. In India, it starts on April 1 and ends on March 31 of the next year.
Rs 11.26 lakh crore -: Rs stands for Rupees, which is the currency of India. A lakh is equal to 100,000, so Rs 11.26 lakh crore means 11.26 trillion rupees.
Securities Transaction Tax -: This is a tax that is paid when buying or selling stocks and other securities in the stock market. It shows how active investors are in trading.
Corporate Tax -: Corporate tax is the tax that companies pay on their profits. It is a part of direct taxes collected by the government.
Personal Income Tax -: This is the tax that individuals pay on the money they earn, like salaries or business income. It is also a part of direct taxes.
