India’s net direct tax collection for the financial year has reached an impressive milestone, standing at Rs 15.60 lakh crore as of February 10. This figure represents around 80% of the revised target set by the government. The Central Board of Direct Taxes (CBDT) has reported steady growth in direct tax collections, with gross collections reaching Rs 18.38 lakh crore, a significant 17.30% increase compared to the same period last year.
Finance Minister Nirmala Sitharaman revised the direct tax collection aim to Rs. 19.45 lakh crore for the current financial year, surpassing the collections of the previous fiscal years. In January, India witnessed a notable 19% annual increase in net direct tax collection, amounting to Rs 14.70 lakh crore.
Sitharaman’s proposal in the interim Budget 2024 reflects the government’s efforts to boost income and consumption, aiming to position India as the world’s third-largest economy. The goal is to raise Rs 21.99 lakh crore from direct taxes and Rs 16.31 lakh crore from indirect taxes in fiscal year 2025.
The estimated gross tax revenue for fiscal 2025 is Rs 38.31 lakh crore, marking an 11.45% increase from the revised target for the current fiscal year. The government has also revised the indirect tax collection target for this year to Rs 14.92 lakh crore. In the previous fiscal years, indirect tax collections stood at Rs 13.94 lakh crore in FY23 and Rs 12.94 lakh crore in FY22.
These figures highlight the positive trajectory of India’s tax collection efforts, showcasing the country’s commitment to fiscal growth and economic stability.