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Net direct tax collections grew 9.8% to Rs.4.62 trillion till mid-June

June 20, 2024
Finance
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India’s net direct tax collections for 2024-25 (FY25) grew 9.81% to Rs 4.62 trillion till June 16 of the first quarter over the same period in FY24. Of the total tax collected until June 16, corporation tax accounted for Rs 1.81 trillion, while personal income tax (I-T) stood at Rs 2.69 trillion. This includes advance tax collections, which contributed Rs 1.48 trillion during the period.

The first instalment of advance tax payment was due on June 15. projection, which has provisioned 13% growth for both corporate and personal I-T collection in the Interim Budget. These are the provisional figures and reflect payments until midnight of June 16. The final number was likely to be revised and could increase further as more information is expected after the two consecutive bank holidays. The gross collection until June 16 stood at Rs 5.15 trillion.

The I-T Department issued Rs.53,140 crore refunds until June 16. Among other tax heads, the securities transaction tax contributes Rs 11,605 crores and the equalization levy Rs 698 crores to the direct tax kitty. The Government aims to raise Rs 21.99 trillion from direct taxes and Rs 16.31 trillion from indirect taxes in FY25.

City-wise collections showed that Mumbai contributes the most to the total mop-up, followed by Karnataka and Delhi. Mumbai accounted for about Rs 1.19 trillion, Karnataka and Goa (Rs 52,076 crores), and Delhi (Rs 48,876 crores).

In FY24, the Centre’s direct tax revenue was at Rs 19.58 trillion, adjusting for refunds, showing 17.7% growth. The Government increased its first estimate of net direct tax collection for the year ended March from Rs 18.23 trillion to Rs 19.45 trillion in the FY25 Interim Budget, which was presented on February 1.

This is mainly due to elevated personal I-T receipts by more than Rs 1.2 trillion. The percentage of total taxes received by the Centre that come from direct taxes has been rising. In FY25, it is anticipated to be 57.4% compared to the FY24 Budget’s 54.4% estimate. With the Government preparing for its full Budget in mid-July, it is prudent to see whether it revises its full-year target for direct taxes, given the previous fiscal growth.

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