Falling Tax Trends: India's Fiscal Struggle
India's net direct tax collection for the fiscal year saw a slight decline of 1.39%, amounting to Rs 4.59 lakh crore, compared to the previous year. This was due to slowing advance tax collections. Corporate tax collection decreased by over 5%, while non-corporate tax saw a 0.7% increase.
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Recent government data reveals a decline in India's net direct tax collection for the current fiscal year, totaling Rs 4.59 lakh crore, marking a 1.39 per cent decrease compared to last year's corresponding period. The decline can be attributed to a slowdown in advance tax collections.
Between April 1 and June 19, 2025, advance tax collections experienced marginal growth of 3.87 per cent to Rs 1.56 lakh crore, starkly contrasting with the 27 per cent growth recorded in the same period in 2024. Corporate tax collection also suffered, falling over 5 per cent year-on-year to Rs 1.73 lakh crore.
While non-corporate tax collections, mainly from personal income tax, saw a modest rise of 0.7 per cent to Rs 2.73 lakh crore, the Securities Transaction Tax increased by 12 per cent to Rs 13,013 crore. Despite these fluctuations, gross direct tax collection grew by 4.86 per cent to Rs 5.45 lakh crore.
(With inputs from agencies.)
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