India’s net direct tax collection for the ongoing fiscal year (FY25) has increased by 13.1%, reaching ₹21.27 lakh crore as of March 16, 2025, according to data released by the Central Board of Direct Taxes (CBDT). The rise in tax revenue highlights strong corporate earnings and increased investor participation in the stock market.
The net corporate tax collection for the period between April 1, 2024, and March 16, 2025, stood at ₹9.69 lakh crore, up from ₹9.05 lakh crore in the same period last year. Meanwhile, net non-corporate tax collections, which primarily include personal income tax, amounted to ₹11.01 lakh crore.
One of the biggest jumps was seen in Securities Transaction Tax (STT), which grew 55% year-on-year to ₹53,095 crore, compared to ₹34,131 crore in the previous year. The surge in STT collections suggests increased trading activity in the Indian stock market.
During this period, tax refunds worth over ₹4.6 lakh crore were issued, marking a 32.51% increase over the year-ago period. Despite these refunds, the gross direct tax collection between April 1, 2024, and March 16, 2025, saw a 16.2% increase, reaching ₹25.87 lakh crore.
For FY25, the government has set a target of ₹22.07 lakh crore in total direct tax collections. This includes ₹10.2 lakh crore from corporate taxes and ₹11.87 lakh crore from personal income tax and other direct taxes.
The rising tax collections reflect India’s strong economic growth, increased compliance, and higher stock market activity. As the financial year nears its end, the government remains optimistic about meeting its revenue targets.
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Source: Moneycontrol.
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