Net direct tax receipts increase by nearly 20% as income tax surpasses corporation tax.
For the past two fiscal years, personal income tax collections have increased more than corporation tax receipts.
The Income Tax Department said in a statement late Friday that cumulative net direct tax collections increased by nearly 20% to Rs 5.74 lakh crore during the April 1–July 11 period of the current fiscal year (2024–25), indicating that personal income tax collections are still higher than corporate tax collections. The amount collected in personal income tax has remained larger than that of corporate tax, with the amount collected in Securities Transaction Tax (STT) more than doubling to Rs 16,634 crore in FY25.
In essence, direct taxes are made up of business and individuals income taxes. Due to a dramatic increase in stock market trading activity, STT collections—which are included in total personal income tax collections—have increased. STT receipts for FY24 from April 1 to July 11 was Rs 7,285 crore.
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