Net direct tax collections zoom around 180% over last decade on robust growth in personal income tax

India's net direct tax collections jumped by 182.02% over last decade to Rs 19.60 lakh crore in FY24, from 6.95 lakh crore in FY15, following strong growth in personal income tax, the latest time series data from the Income Tax Department showed. Personal income tax collections zoomed up nearly 300% to Rs 10.45 lakh crore, from 2.65 lakh crore in FY15, outpacing corporate tax collections, which rose by 112.85% to Rs 9.11 lakh crore from Rs 4.28 lakh crore in FY15.

The contribution of direct taxes to total tax revenue climbed to 56.72% in 2023-24, the highest in 14 years. The direct tax-to-GDP ratio or the share of direct taxes in the overall economic output also jumped to over a two-decade high of 6.64%, time-series data released by the Central Board of Direct Taxes (CBDT) under the Ministry of Finance showed yesterday.

The data showed that FY24 was the second year in a row when personal income tax collection at Rs 10.45 lakh crore was higher than corporate tax collection of Rs 9.11 lakh crore. Tax buoyancy — the growth rate of taxes in relation to the economy’s nominal growth rate — grew to 2.12 in 2023-24 from 1.18 in the previous financial year. Income tax return filers increased to 8.09 crore in FY24 from 7.4 crore in FY23. In assessment year 2023-24, number of taxpayers increased to 10.41 crore from 9.37 crore.

Powered by Capital Market - Live News