Net direct tax collection rises 14.69% to Rs 17.78 trillion in FY25

The rise was driven by a strong increase in personal income tax, which includes net non-corporate taxes.

Collections in this category surged 21% YoY to Rs 9.48 trillion, while net corporate tax revenue increased by more than 6% to over Rs 7.78 trillion between April 1, 2024, and February 10, 2025.

Revenue from the securities transaction tax (STT) saw the sharpest rise, jumping 65% to Rs 49,201 crore.

The government also issued Rs 4.10 trillion in tax refunds, marking a 42.63% increase over the previous year.

Overall, gross direct tax collection climbed 19.06% to more than Rs 21.88 trillion by February 10.

Revised estimates for FY25

The government has revised its direct tax collection targets in the Revised Estimates (RE) for the fiscal year.

Income tax collection is now expected to reach Rs 12.57 trillion, up from the Rs 11.87 trillion projected in the Budget Estimates (BE).

The STT target has also been raised to Rs 55,000 crore, significantly higher than the initial Rs 37,000 crore projection.

However, the corporate tax target has been revised downward to Rs 9.80 trillion, compared to Rs 10.20 trillion in the Budget Estimates.

Overall, the government now expects total direct tax collections to touch Rs 22.37 trillion, slightly higher than the Rs 22.07 trillion projected earlier.