Direct Tax Surge: Unveiling India's Fiscal Strength

India's fiscal landscape shows promising strength with a 9.18% growth in net direct tax collection, reaching over Rs 10.82 lakh crore for the fiscal year. This surge is primarily fueled by enhanced corporate advance tax payments alongside a notable decline in refund issuances, which fell 24% to Rs 1.61 lakh crore.

The corporate advance tax collection witnessed a 6.11% increase, climbing over Rs 3.52 lakh crore. In contrast, the non-corporate segment saw a 7.30% dip, collecting Rs 96,784 crore. Despite the decline, overall corporate tax collections have surged, standing at over Rs 4.72 lakh crore, a rise from Rs 4.50 lakh crore in the preceding year.

In the non-corporate tax realm, comprising individuals and Hindu Undivided Families (HUFs), collections have also improved, reaching approximately Rs 5.84 lakh crore. Furthermore, the Securities Transaction Tax (STT) showed slight growth, contributing Rs 26,306 crore. The government projects a direct tax collection target of Rs 25.20 lakh crore for the fiscal year 2025-26.

(With inputs from agencies.)