New Delhi [India], The Finance Ministry has announced a strong growth in India's direct tax collections for the financial year 2024-25, with a growth of 20.99 per cent in net collections and 22.19 per cent growth in gross collections.
According to a press release from the Finance Ministry, these figures underline the country's strong economic performance and healthy tax compliance environment.
As per the provisional data till June 17, 2024, the net direct tax collection for the financial year 2024-25 has reached Rs 4,62,664 crore.
This marks a substantial increase from Rs 3,82,414 crore collected during the same period of the last financial year, FY 2023-24.
The net collection includes corporation tax (CIT) of Rs 1,80,949 crore and personal income tax (PIT) as well as securities transaction tax (STT) totaling Rs 2,81,013 crore.Gross direct tax collections, as per refunds, have also seen a significant increase. The gross collection is Rs 5,15,986 crore, which was Rs 4,22,295 crore in the same period last year.
This represents an increase of 22.19 per cent, which reflects a significant increase in both corporate and individual tax revenues. The gross collection includes Rs 2,26,280 crore from CIT and Rs. 2,88,993 crore from PIT including STT.Advance tax collections, a key indicator of economic health, increased by Rs. There has been an increase. This is a significant increase of 27.34 per cent compared to Rs 1,48,823 crore by mid-June 2024. Rs 1,16,875 crore was collected during the same period in the financial year 2023-24.
Rs. in advance tax. Rs 1,14,353 crore from corporations. Rs 34,470 crore was received from individual taxpayers, indicating strong corporate profitability and increase in individual income levels.
The detailed breakdown of tax collection is as follows: Tax Deducted at Source (TDS) Rs. Rs 3,24,787 crore reflects widespread compliance and collection efficiency, the press release said.Self Assessment Tax Rs. 28,471 crore, which reflects the proactive approach of taxpayers in managing their tax liabilities. Regular assessment tax account amounting to Rs. 10,920 crore, representing taxes assessed and collected after regular assessment processes.
In addition, other minor items amounting to Rs. 2,985 crore, which includes various other categories of direct taxes. Apart from the increase in tax collection, a total of Rs. Refund also. Till June 17, Rs 53,322 crore has been released in the financial year 2024-25.
This is an increase of 33.70 percent compared to the refund of Rs.Rs 39,870 crore was released in the same period last year. The increase in refunds reflects the government's commitment to ensure timely and efficient processing of taxpayers' claims, which is important to maintain taxpayer confidence and compliance.
The strong performance in direct tax collections highlights the strong economic activity and better tax administration in India.
The increase in both CIT and PIT collections points to a growing corporate sector and higher income levels among individuals, contributing to the financial health of the country.
The increase in advance tax collections is particularly encouraging, as it suggests positive expectations among taxpayers about future income and profits.It also indicates that businesses and individuals are experiencing growth and are willing to pay upfront taxes, which reflects their confidence in the economic outlook.
The Finance Ministry's data on refunds also highlights the effectiveness of the tax administration in processing claims and ensuring that excess taxes paid are promptly refunded to taxpayers.
This efficiency is likely to increase voluntary compliance and contribute to the overall efficiency of the tax system.
The substantial growth in direct tax collections for FY 2024-25 indicates a strong economic environment and effective tax administration in India. The increase in both gross and net collections, coupled with increase in advance tax payments and timely release of refunds, reflects the overall health and stability of the Indian economy.These trends are expected to continue as the fiscal year progresses, further boosting the country's fiscal strength and economic growth.
According to a press release from the Finance Ministry, these figures underline the country's strong economic performance and healthy tax compliance environment.
As per the provisional data till June 17, 2024, the net direct tax collection for the financial year 2024-25 has reached Rs 4,62,664 crore.
This marks a substantial increase from Rs 3,82,414 crore collected during the same period of the last financial year, FY 2023-24.
The net collection includes corporation tax (CIT) of Rs 1,80,949 crore and personal income tax (PIT) as well as securities transaction tax (STT) totaling Rs 2,81,013 crore.Gross direct tax collections, as per refunds, have also seen a significant increase. The gross collection is Rs 5,15,986 crore, which was Rs 4,22,295 crore in the same period last year.
This represents an increase of 22.19 per cent, which reflects a significant increase in both corporate and individual tax revenues. The gross collection includes Rs 2,26,280 crore from CIT and Rs. 2,88,993 crore from PIT including STT.Advance tax collections, a key indicator of economic health, increased by Rs. There has been an increase. This is a significant increase of 27.34 per cent compared to Rs 1,48,823 crore by mid-June 2024. Rs 1,16,875 crore was collected during the same period in the financial year 2023-24.
Rs. in advance tax. Rs 1,14,353 crore from corporations. Rs 34,470 crore was received from individual taxpayers, indicating strong corporate profitability and increase in individual income levels.
The detailed breakdown of tax collection is as follows: Tax Deducted at Source (TDS) Rs. Rs 3,24,787 crore reflects widespread compliance and collection efficiency, the press release said.Self Assessment Tax Rs. 28,471 crore, which reflects the proactive approach of taxpayers in managing their tax liabilities. Regular assessment tax account amounting to Rs. 10,920 crore, representing taxes assessed and collected after regular assessment processes.
In addition, other minor items amounting to Rs. 2,985 crore, which includes various other categories of direct taxes. Apart from the increase in tax collection, a total of Rs. Refund also. Till June 17, Rs 53,322 crore has been released in the financial year 2024-25.
This is an increase of 33.70 percent compared to the refund of Rs.Rs 39,870 crore was released in the same period last year. The increase in refunds reflects the government's commitment to ensure timely and efficient processing of taxpayers' claims, which is important to maintain taxpayer confidence and compliance.
The strong performance in direct tax collections highlights the strong economic activity and better tax administration in India.
The increase in both CIT and PIT collections points to a growing corporate sector and higher income levels among individuals, contributing to the financial health of the country.
The increase in advance tax collections is particularly encouraging, as it suggests positive expectations among taxpayers about future income and profits.It also indicates that businesses and individuals are experiencing growth and are willing to pay upfront taxes, which reflects their confidence in the economic outlook.
The Finance Ministry's data on refunds also highlights the effectiveness of the tax administration in processing claims and ensuring that excess taxes paid are promptly refunded to taxpayers.
This efficiency is likely to increase voluntary compliance and contribute to the overall efficiency of the tax system.
The substantial growth in direct tax collections for FY 2024-25 indicates a strong economic environment and effective tax administration in India. The increase in both gross and net collections, coupled with increase in advance tax payments and timely release of refunds, reflects the overall health and stability of the Indian economy.These trends are expected to continue as the fiscal year progresses, further boosting the country's fiscal strength and economic growth.
