India’s Direct Tax Collection: Revised Estimates to Remain Unchanged for FY 2024-25
The Centre is likely to maintain its direct tax revenue target at ₹22.07 lakh crore for FY 2024-25, as it presents the revised estimates in February 2025. Here’s a breakdown of current performance and future projections:
Key Highlights of Direct Tax Collection Performance
- Unchanged Direct Tax Revenue Estimate
The direct tax revenue target of ₹22.07 lakh crore for FY 2024-25, set in July, is expected to remain unchanged in the revised estimates.
- Personal Income Tax Growth Surpassing Expectations
Personal income tax collection is set to exceed estimates by ₹1.3 lakh crore, driven by strong growth despite a slower pace in corporate tax collections.
- Corporate Tax Collection Trends
Net corporate tax collections rose 11.26% YoY, reaching ₹4.94 lakh crore by October 10. The target for corporate tax collection remains ₹10.20 lakh crore, reflecting a 12% increase.
- Personal Income Tax Collection Status
Personal income tax collections have reached ₹5.98 lakh crore as of October 10, with the full-year target set at ₹11.87 lakh crore — a 13.6% increase from last year’s ₹10.44 lakh crore.
- Historical Context: Overachievement in FY 2023-24
Direct tax collections for FY 2023-24 surpassed budgeted estimates by ₹1.35 lakh crore. In contrast, indirect taxes were revised down to ₹14.84 lakh crore from ₹15.37 lakh crore.
Economic Outlook and Expectations
Revised estimates for direct taxes will provide clarity, with the December quarter expected to show further growth in personal income tax collections.
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