The provisional net direct tax collection for the 2024-25 financial year has successfully met its target, growing by 13.57 per cent to over ₹22.26 lakh crore, official data revealed on Friday. The figures also showed that the income tax department issued the highest-ever amount of refunds during the fiscal.
Initially, the government had set a target of ₹22.07 lakh crore for direct tax collections in the budget receipts of July 2024, which was later revised to ₹22.37 lakh crore in the budget presented this February.
Direct taxes encompass revenue collected by the Union government under corporate taxes and non-corporate taxes (previously referred to as personal income tax). Non-corporate taxes are those paid by individuals, firms, Hindu Undivided Families (HUFs), local authorities, and artificial juridical persons.
According to the official data, the provisional gross (before adjusting for refunds) direct tax collection for the fiscal year ending 31 March 2025 stood at ₹27.02 lakh crore. This represents a growth of 15.59 per cent compared to ₹23.37 lakh crore collected during the 2023-24 fiscal.
Similarly, the provisional net (after issuing refunds) direct tax collection stood at ₹22.26 lakh crore for 2024-25, marking an increase of 13.57 per cent compared to ₹19.60 lakh crore during the preceding year.
The provisional net direct tax collections reached 100.78 per cent of the original July budget target and 99.51 per cent of the revised estimate set in February.
Officials noted that these figures are provisional and may increase further as the final stages of reconciliation and adjustments for the 2024-25 fiscal are still underway.
The data also highlighted that the income tax department issued record refunds worth ₹4.76 lakh crore during 2024-25, an increase of 26.04 per cent compared to ₹3.78 lakh crore in the previous fiscal.
An official commented, "The gross direct tax collection has exceeded the budget target of ₹22.37 lakh crore, and the income tax department managed to achieve these figures even after issuing a record ₹4.76 lakh crore in refunds."
The official further emphasised that this performance reflects the department’s commitment to taxpayers, ensuring that rightful claims are honoured in a transparent and fair manner.
Breaking down the figures further, the provisional net corporate tax collection for 2024-25 stood at ₹9.86 lakh crore, showing a growth of 8.30 per cent over the previous year. Gross corporate tax collections for the same period amounted to ₹12.72 lakh crore, reflecting a growth of 12.41 per cent.
In the non-corporate category, the net provisional collection during 2024-25 stood at ₹11.82 lakh crore, representing a growth of 17 per cent over the preceding year.
The tax buoyancy factor, which measures the growth rate of direct taxes relative to the GDP growth rate, was recorded at 1.57 for the 2024-25 fiscal, slightly higher than 1.54 registered during 2023-24.
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