The Government of India’s net direct tax collection increased by 15.9 per cent to Rs 16.89 lakh crore in the current financial year 2024-25. During the same period last year, it was Rs 14.58 lakh crore. The Income Tax Department gave this information on January 13 (Monday).
The Central Board of Direct Taxes (CBDT) said that till January 12, net direct tax collection of Rs 16.89 lakh crore was made. This includes corporate tax (net of refund) of Rs 7.68 lakh crore, non-corporate tax of Rs 8.74 lakh crore and securities transaction tax (net of refund) of Rs 44,538 crore.
The government issued a refund of Rs 3.74 lakh crore
The government has issued direct tax refunds worth Rs 3.74 lakh crore till January 12, a growth of 42.49 per cent over the same period in 2023-24. While in the collection of tax excluding companies, we recorded a growth of 21.5% in withholding tax. Corporate tax has only increased by 8%.
Collecting taxes is important because it helps the government achieve its budget deficit target. The Center set a fiscal deficit target of 4.9 per cent for FY25 in the July Budget.
Direct tax collection on a gross basis before adjustment for refunds stood at Rs 20.64 lakh crore till January 12, a growth of 19.9% over the same period a year ago.
Difference between direct and indirect taxes?
The tax collected directly from the ordinary citizen is called direct tax. Direct taxes include corporate income tax and personal income tax. The tax imposed on shares or other assets is also called direct tax. The tax which is not collected directly from the general public but is also collected from the general public is called indirect tax. This includes excise duty, customs duty and GST.
Previously, there were many types of indirect taxes in the country. But since July 1, 2017, all types of indirect taxes are included in GST. However, taxes on petroleum products and alcoholic beverages are currently excluded from the scope of GST. Tax collection is considered to reflect economic activities in any country. Direct tax collection in India has been good this year.