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Direct tax collection grows 13.57% in FY25; misses revised target
Apr-28-2025

The net direct tax collection for the financial year 2024-25 has grew by 13.57 per cent to over Rs 22.26 lakh crore. However, due to issuance of the highest-ever amount of refunds it has narrowly missed the target of Rs 22.37 crore set by the government. As per the data, the provisional gross (before adjusting for refunds) direct tax collection for the 2024-25 fiscal that ended March 31 stood at Rs 27.02 lakh crore, a growth of 15.59 per cent, when compared to the gross collection of Rs 23.37 lakh crore during the 2023-24 fiscal. Similarly, the provisional figures for net (after issuing refunds) direct tax collections for the 2024-25 fiscal stood at Rs 22.26 lakh crore, an increase of 13.57 per cent as compared to Rs 19.60 lakh crore in the preceding fiscal. 

The revenue collection from the securities transaction tax (STT) grew to Rs 53,296 crore during the last fiscal from Rs 34,192 crore during the preceding financial year of 2023-24. These direct tax collection figures are provisional and the collections are expected to grow as last stage reconciliation and adjustments for the 2024-25 fiscal are still underway. The data showed that the tax department issued the highest-ever refunds worth Rs 4,76,743 crore during the 2024-25 fiscal, an increase of 26.04 per cent as compared to the refunds of Rs 3,78,255 crore issued during the last fiscal of 2023-24. 

The net corporate tax collection (provisional) during the last fiscal of 2024-25 stood at Rs 9,86,719 crore, a growth of 8.30 per cent over the preceding year. The gross tax collection figures for the same head (corporate tax) have increased by 12.41 per cent at Rs 12,72,516 crore (2024-25) over the preceding year. Coming to non-corporate tax, the net provisional mop up during 2024-25 stood at Rs 11,82,875 crore, exhibiting a growth of 17 per cent over the preceding year. Meanwhile, the tax buoyancy factor, which is the rate of direct tax to the growth of GDP, was registered at 1.57 during the 2024-25 fiscal as compared to 1.54 during the comparative period of 2023-24.

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