Direct tax collections climb to ₹5.45 lakh crore

THEBUSINESSBYTES BUREAU

NEW DELHI, JUNE 21, 2025

India’s gross direct tax collections have shown steady momentum in the current fiscal year, rising 4.86 per cent to ₹5.45 lakh crore as of June 19, 2025, according to the latest data from the Income Tax Department. This includes revenues from corporate tax, non-corporate tax, securities transaction tax (STT), and other levies.

Despite the uptick in gross collections, net direct tax receipts witnessed a slight dip of 1.39 per cent to ₹4.58 lakh crore, compared to ₹4.65 lakh crore collected during the same period last year. The dip is attributed to a significant 58.04 per cent increase in refunds, amounting to ₹86,385 crore issued so far this fiscal.

As per the Central Board of Direct Taxes (CBDT), net direct tax collections comprise ₹1.72 lakh crore from corporate tax, ₹2.72 lakh crore from non-corporate tax, and ₹13,013 crore from STT. While non-corporate advance tax collections registered a decline of 2.68 per cent, corporate advance tax collections rose by 5.68 per cent. Overall, advance tax collections increased by 3.87 per cent to reach ₹1.55 lakh crore.

In an effort to streamline taxpayer compliance, the Income Tax Department recently introduced the ‘e-Pay Tax’ facility, enhancing the ease of payment and transparency in tax procedures. This comes alongside the Union Budget’s proposal to overhaul the decades-old Income-tax Act, 1961, aiming for a more transparent and contemporary taxation framework.

Meanwhile, GST revenues continue to reflect robust economic activity. In May 2025, gross GST collections hit ₹2.01 lakh crore, up 16.4 per cent from ₹1.72 lakh crore in May 2024. This marks the second consecutive month of GST receipts exceeding the ₹2 lakh crore mark. April 2025 had seen a record-breaking ₹2.37 lakh crore collection, a 13 per cent jump over March, as per the Ministry of Finance.