The Income Tax Department’s data from the financial year 2000-01 to 2023-24 provides an in-depth analysis of India’s tax revenue generation trends, specifically from direct taxes. This collection includes figures for corporate taxes, personal income taxes, and other direct taxes, showcasing how the country’s tax landscape has evolved.
Here, we look at various aspects of this data, highlighting the trends, regional contributions, and their impact on India’s overall tax revenues.
Direct Tax Collection: A Steady Increase
India’s direct tax collection has seen remarkable growth over the last two decades. From ₹68,305 crore in FY 2000-01, the total collection surged to ₹19,60,166 crore in FY 2023-24 (provisional), with significant year-on-year growth.
In FY 2023-24, corporate tax collections amounted to ₹9,11,055 crore, while personal income tax collections reached ₹10,45,139 crore. This indicates a substantial rise in both corporate and personal tax contributions, reflecting the country’s growing economy and the expanding tax base.
Regional Breakdown of Tax Collection
Tax collection is not uniform across India’s states and union territories (UTs). Larger, more industrialized states like Maharashtra, Karnataka, Gujarat, and Tamil Nadu contribute the lion’s share of tax revenues. In FY 2023-24, Maharashtra alone accounted for ₹7,61,716 crore of the total tax receipts, followed by Karnataka with ₹2,34,098 crore.
Contribution of Direct Taxes to Total Tax Revenue
One of the most striking trends in India’s tax system is the growing contribution of direct taxes to the total tax revenue. From making up 36.31% of total tax revenue in FY 2000-01, direct taxes’ share reached 56.72% in FY 2023-24 (provisional). This increase reflects a shift towards more direct taxation as the government increasingly focuses on broadening the tax base and curbing tax evasion.
The direct tax system has evolved significantly over the past two decades, with higher contributions from both corporate and personal income taxes. The rise in tax receipts and the growing contribution of direct taxes to the national revenue are promising signs of a more compliant and robust tax environment. With increasing tax buoyancy and a widening base, the future of India’s tax revenue system looks increasingly sustainable, contributing positively to the country’s fiscal health and economic growth.
Direct Tax Collections for FY 2024-25
As of November 10, 2024, the latest figures for direct tax collections in India show a robust performance for the financial year 2024-25, signaling a continued growth trend despite higher refunds compared to last year. The data reveals a total gross collection of Rs. 15,02,161 crore, a remarkable 21.2% increase from the previous year’s gross collection of Rs. 12,39,402 crore for the same period.
The growth is primarily driven by corporate tax and other taxes, reflecting the country’s resilience in tax collection even as the economy navigates a post-pandemic recovery.
The gross collection of Rs. 15,02,161 crore for FY 2024-25 comprises several categories of taxes, each contributing to the overall rise:
Corporate tax collections in FY 2024-25 reached Rs. 6,60,354 crore, up from Rs. 5,59,868 crore in FY 2023-24. This represents a growth of approximately 18% in corporate tax receipts, which indicates a positive business sentiment and profitability across sectors.
Non-corporate taxes, which include individual income tax, taxes paid by HUFs, firms, and other legal entities, increased from Rs. 6,58,184 crore in FY 2023-24 to Rs. 8,03,491 crore in FY 2024-25. This category saw a substantial growth of 21.9%, further reflecting a robust increase in income tax collections, particularly from the salaried class and individuals.
Refer:
