India’s direct tax collections rise 16.45% to ₹15.82 lakh crore so far in FY25

India’s direct tax collections have posted a strong performance in FY25 so far, with a 16.45% year-on-year (YoY) growth, reaching over ₹15.82 lakh crore as of December 17, according to the latest government data.

The growth in gross collections, which stood at ₹19.21 lakh crore, reflects a 20.32% increase, driven largely by corporate and personal income tax.

Corporate tax collections saw a steady rise, with gross collections reaching ₹9.24 lakh crore, compared to ₹7.90 lakh crore in FY24. After refunds, the net corporate tax collections rose to ₹7.42 lakh crore, up from ₹6.83 lakh crore in the same period last year.

On the other hand, non-corporate taxes, including personal income tax, exhibited strong growth, with gross collections climbing to ₹9.53 lakh crore, up from ₹7.81 lakh crore in FY24. Net collections from this segment also rose significantly to ₹7.97 lakh crore from ₹6.50 lakh crore.

Refunds issued till December 17 amounted to ₹3.38 lakh crore, marking a 42.49% increase from last year, reflecting the government’s efforts to expedite tax returns.

The overall advance tax collection, including both corporate and non-corporate taxes, grew by 20.9%, reaching ₹7.56 lakh crore. While corporate tax mop-up grew by 16.71%, non-corporate tax collections saw a substantial 35% growth.

These strong collections contribute to the government’s ability to meet its fiscal deficit targets for FY25, set at 4.9%. The Centre set a 4.9% fiscal deficit target for FY25 in the July Union Budget.