Net direct tax kitty grows 16% to Rs 16.90 lakh crore till January 12: Income Tax Department
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.
According to the Income Tax Department's most recent data, India's net direct tax revenues increased by 15.88 per cent to Rs 16.90 lakh crore between April 1, 2024 and January 12, 2025, compared to the same time in the previous fiscal year.
Gross direct collections, before refunds, increased by 19.94 per cent to Rs 20.64 crore during this time, compared to Rs 17.21 lakh crore in the same period last year, the data said.
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.
With agencies inputs
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12:54 PM IST