Personal income tax collections are overtaking corporate tax collections, with cumulative net direct tax collections rising by nearly 20 percent to Rs 5.74 lakh crore during the period April 1 to July 11 of the current financial year (2024-25), Income Tax Department said in a statement late Friday night. Personal income tax collections continue to exceed corporate tax collections, with Securities Transaction Tax (STT) collections more than doubling to Rs 16,634 crore in FY20.
Direct taxes essentially include personal income tax and corporate tax. STT collections, which are counted in the overall personal income tax collections, have increased due to the sharp increase in stock market trading activity. In FY24, STT collection from April 1 to July 11 was Rs 7,285 crore.
Personal income tax collections have increased more than corporate tax collections in the last two financial years. The data shows that personal income tax collections account for 60 percent of the total net direct tax collected so far this financial year.
Adjusted for refunds, personal income tax collections rose 21.41 percent year-on-year to Rs 3.46 lakh crore in this financial year till July 11. The growth rate of personal income tax collection including STT has been 24.07 percent. On the other hand, net corporate tax collection has growth by 12.47 percent to Rs 2.10 lakh crore.
Gross direct tax collections before refunds increased by 23.2 percent to Rs 6.45 lakh crore till July 11 of the current financial year. During April 1 to July 11, direct tax refunds have increased by 64.5 percent to Rs 70,902 crore.
