India’s Tax Collections Surge in 2024
Big Boost from Securities Transaction Tax
India’s direct tax net collection for the financial year 2024-25 has seen a significant surge, with an increase of 21.48% as of September 17, 2024, according to data from the Central Board of Direct Taxes (CBDT). The gross collection of direct tax stood at Rs 12.01 lakh crore for the period April to September, up from Rs 9.88 lakh crore the previous year.
The net collection has risen by 16.12% to Rs 9.95 lakh crore, compared to Rs 8.57 lakh crore on September 17, 2023. A major contributor to this growth is the Securities Transaction Tax (STT), which doubled to Rs 26,154 crore from Rs 13,352 crore in 2023, indicating increased investor exposure in the equity markets.
Corporate tax collections also saw a significant increase of 18.26%, reaching Rs 5.58 lakh crore, up from Rs 4.72 lakh crore collected from April 1 to September 17, 2023. Personal income tax collections rose by 22.8% to Rs 6.14 lakh crore, compared to Rs 5 lakh crore the previous year.
Advance tax collections, a key factor for the government’s fiscal planning, recorded a 22.61% uptick, soaring to Rs 4.36 lakh crore from April 1 to September 17, 2024, up from Rs 3.55 lakh crore in the same period last year. Corporate tax in the advance tax category increased by 18.17% to Rs 3.31 lakh crore, while personal advance tax collections rose by 37.22% to Rs 1.04 lakh crore.
Doubts Revealed
Tax Collections -: Tax collections are the money the government collects from people and businesses. This money is used to run the country and provide services like schools and hospitals.
Financial Year -: A financial year is a 12-month period used for budgeting and accounting. In India, it starts on April 1 and ends on March 31 of the next year.
Rs 12.01 lakh crore -: Rs 12.01 lakh crore is a way to say 12.01 trillion rupees. In India, ‘lakh’ means 100,000 and ‘crore’ means 10 million.
Securities Transaction Tax -: Securities Transaction Tax is a tax you pay when you buy or sell shares in the stock market. It helps the government earn money from stock market activities.
Corporate Tax -: Corporate tax is the money that companies pay to the government from their profits. It helps fund public services and infrastructure.
Personal Income Tax -: Personal income tax is the money that individuals pay to the government from their earnings. This helps the government provide services like roads and schools.
Advance Tax -: Advance tax is the money that people and companies pay to the government in installments throughout the year, instead of paying it all at once at the end.
