India’s net direct tax collection jumps over 19% till July 11

Common examples of direct taxes are income tax, property tax, corporate tax

India's net direct tax collections grew 19.54 percent to Rs 5.74 lakh crore till July 11 in the current financial year as compared to Rs 4.80 lakh crore in FY24 in the corresponding period, income tax department said.

The Central Board of Direct Taxes (CBDT) said net direct tax collection of Rs 5.74 lakh crore (as of July 11) includes Corporation Tax (CIT) at Rs 2.1 lakh crore (net of refund) and Personal Income Tax (PIT) at Rs 3.46 lakh crore and Securities Transaction Tax (STT) at Rs 16,634 crore (net of refund).

The government has issued direct tax refunds of Rs 70,902 crore till July 11 in 2024-25, which is an increase of 64.49 percent compared to Rs 43,105 crore it issued in the corresponding period in 2023-24.

The government had in the revised estimates for direct tax collection pegged the receipts for the full fiscal (April-March) at Rs 21.99 lakh crore.

Healthy tax collection is significant since it helps the government meet its fiscal deficit target for a particular year. The Centre targeted a 5.2 percent fiscal deficit target for FY25 in the interim budget.

On a gross basis, before adjusting refunds, the direct tax collection stood at Rs 6.45 lakh crore till July 11 FY25, an 23.24 per cent growth  over the year-ago period.

Direct taxes, which are levied on the income or profit of a person, are directly paid by an individual to the government without any intermediaries.

Common examples of direct taxes are income tax, property tax, corporate tax, wealth tax, gift tax, security transaction tax, and capital gains tax.