New Delhi, Jan 14 (Blitz India Buisness) India’s net direct tax collections recorded a robust 15.88 per cent jump to Rs 16.90 lakh crore during April 1, 2024-January 12, 2025 of the current financial year compared to the same period of the previous financial year, according to latest figures compiled by the Income Tax Department.
The gross direct tax collections, before refunds, shot up by 19.94 per cent to Rs 20.64 crore during this period compared to the corresponding figure of Rs 17.21 lakh crore in the same period of the previous year.
Personal income tax collections during the period surged 21.6 per cent to Rs 8.74 lakh crore compared to Rs 7.2 lakh crore in the previous year while corporate tax collection rose by 8.12 per cent to Rs 7.7 lakh crore compared to Rs 7.10 lakh crore in the same period of 2023-24.
Securities Transaction Tax (STT) collection, which is also a component of direct tax, surged by as much as 75 per cent to Rs 44,500 crore during this period compared to Rs 25,415 crore in the corresponding period of the previous year.
Refunds to the tune of Rs 3.74 lakh crore were also issued during this period which is 42.5 per cent higher year-on-year.
The buoyancy in tax collections reflects a strong macroeconomic financial position with the government raising more funds to undertake investments in large infrastructure projects to spur economic growth and take up welfare schemes for the poor.
It also helps to keep the fiscal deficit in check. A lower fiscal deficit means the government has to borrow less which leaves more money in the banking system for big companies to borrow and invest. This in turn leads to a higher economic growth rate and the creation of more jobs.
Besides, a low fiscal deficit keeps the inflation rate in check which strengthens the fundamentals of the economy and ensures growth with stability.
The government aims to bring down the fiscal deficit to 4.9 per cent of gross domestic product (GDP) in the current financial year from 5.6 per cent in 2023-24 as part of the fiscal consolidation process to strengthen the economy.