Total Income Tax Collection in India 2024-25

Income tax is one of the major sources of revenue for the Central Government of India. Income tax collection saw a notable increase in 2024, reflecting the strengthening of the tax base, improved compliance, and growing economy. The CBDT has released the data for the direct tax collections for FY 2024-25 as on March 16, 2025. In this article, we will analyze what this data reflects and its impact on the Indian economy.

Direct Tax Collections in FY 2024-25

The gross direct tax collections during FY 2024-25 are Rs. 25,86,947 Crore. This includes Rs. 12,40,308 Crore from corporate taxes, Rs. 12,90,144 Crore from Personal Income tax, Rs. 53,095 Crore from Securities Transaction Tax(STT), and Rs. 3,399 Crore from Other taxes. The total refunds issued were Rs. 4,60,024 Crore; hence, the net collections from direct tax are Rs. 21,26,923 Crore. The following table summarizes the net tax collections for FY 2024-25:

Note: Other Taxes include Equalization Levy, Fringe Benefit Tax, Wealth Tax, Banking Cash Transaction Tax, Hotel Receipt Tax, Interest Tax, Expenditure Tax, Estate Duty and Gift Tax.

Direct Tax Collections - FY 2023-24 v/s FY 2024-25

The following table depicts the collections in FY 2023-24 and FY 2024-25 and the growth percentage:

Analysis of the table:

• Corporate Tax Growth: The corporate tax collections increased by approximately 7.1%, which indicates an increase in the profitability of the companies which has a positive impact on the economy. 
• Surge in Personal Income Tax: The personal income tax has seen a growth rate of 17.47%, which indicates increase income levels or increased employment.
• Securities Transaction Tax Boom: The securities transaction tax has an impressive growth of 55.56%, which indicates increased trading activity in the stock market and possibly higher investor participation.

Conclusion

The direct tax collections in FY 2024-25 have shown an impressive growth rate rate across all kinds of direct taxes which indicates that the country’s economy is improving over the years. The government in turn uses these funds to improve the infrastructure and help in the development of the country by ensuring fiscal stability.