Direct Tax Mop-Up for FY 2024-25 Falls Just Short of Target Due to Record Refunds
By Author / April 26, 2025
Source: CBDT Direct Tax Collection – Data
Revised Tax Collection Targets
The government initially set the direct tax collection target at ₹22.07 lakh crore in July 2024. This figure was later revised to ₹22.37 lakh crore in the February 2025 Union Budget.
Net Collection Slightly Below Revised Target
Net direct tax collections for FY 2024-25 reached ₹22.26 lakh crore. This marks a growth of 13.57% over the ₹19.60 lakh crore collected in FY 2023-24. However, the mop-up fell just short of the revised estimate, achieving 99.51% of the ₹22.37 lakh crore target.
Record Refunds Impact Net Revenue
The Income Tax Department issued refunds worth ₹4.76 lakh crore, the highest ever in a single fiscal year. This reflects a 26.04% increase over the ₹3.78 lakh crore refunded in FY 2023-24. Officials confirmed that the department honored all legitimate claims to ensure transparency and fairness.
Gross Collection Crosses ₹27 Lakh Crore
Provisional gross direct tax collection stood at ₹27.02 lakh crore, a 15.59% rise from ₹23.37 lakh crore in the previous year. This collection surpassed the revised budget estimate before accounting for refunds.
Breakdown of Tax Components
Corporate Tax:
- Net Collection: ₹9.86 lakh crore (up 8.30%)
- Gross Collection: ₹12.72 lakh crore (up 12.41%)
Non-Corporate Tax (Including Personal Income Tax):
- Net Collection: ₹11.83 lakh crore (up 17%)
Securities Transaction Tax (STT):
- Collection: ₹53,296 crore (up from ₹34,192 crore)
Final Adjustments Still in Progress
The tax department expects collections to increase slightly as final reconciliations and adjustments for FY 2024-25 are ongoing. The tax buoyancy ratio—which compares direct tax growth with GDP growth—stood at 1.57, slightly higher than 1.54 in the previous fiscal.
