Net Direct Tax Collections rise 13% to Rs.21.27 Lakh Crore in FY25:

Net Direct Tax Collections rise 13% to Rs.21.27 Lakh Crore in FY25 Net direct tax collections in 2024-25 (until March 16, 2025) increased 13% to Rs.21.26 lakh crore, up from Rs.18.80 lakh crore in the same previous year, owing mostly to robust growth in personal income tax collections. The government plans to collect Rs.22.4 lakh crore in direct taxes for the entire financial year. Personal income tax collections increased by 17.5% in the current financial year to Rs.11.01 lakh crore, while corporate tax collection grew at a slower rate of slightly more than 7%. For FY25, the revised aim is to collect Rs.12.57 lakh crore in personal income taxes and Rs.9.8 lakh crore in corporate taxes. Securities Transaction Tax (STT), which is levied on the sale and purchase of stocks, increased by an impressive 55.6% over the period, reaching Rs 53,095 crore. For the current financial year, the government expects to collect Rs 55,000 crore from STT. According to an expert, the tax collecting trend indicates an increased reliance and growth in personal taxes rather than corporate income tax. "The revised collection continues to show a healthy increase in personal and Securities Transaction Tax (STT), while the revised estimate for corporation tax was revised downwards from 10.2 lakh crore to 9.8 lakh crore," according to an expert. It should be mentioned that the government has announced a substantial revamp of income tax rates and thresholds, which will result in an estimated revenue loss of Rs.1 lakh crore. The revised rates will take effect in the new financial year (FY25). However, the government has set a 14% higher collection target for personal income tax in FY25.