Advance mop-up enhances net direct tax collection by 16.45 pc

New Delhi: Buoyed by higher advance tax mop-up, India’s net direct tax collections grew 16.45 percent to Rs 15.82 lakh crore till December 17 in the current financial year from Rs 13.59 lakh crore in the year-ago period, the income tax department said.

As per the Central Board of Direct Taxes (CBDT), advance tax collection during the period rose 21 per cent to Rs 7.56 lakh crore. "The collection includes corporate tax of over Rs 7.42 lakh crore and non-corporate tax mop-up of Rs 7.97 lakh crore,” the department said.

“Securities transaction tax or STT of Rs 40,114 crore was collected between April 1-December 17 of current fiscal year, while refunds worth Rs 3.39 lakh crore were issued during the period, registering a growth of 42.49 per cent year-on-year,” it added.

“Gross direct tax collection, which includes corporate, personal income tax and STT stood at over
Rs 19.21 lakh crore, a 20.32 per cent growth over the collection in April 1-December 17, 2023,” it said.

With the robust collection of direct tax, it would help the government meet its fiscal deficit target for a particular year. The Centre targeted a 4.9 percent fiscal deficit target for FY25 in the July budget. On a gross basis, before adjusting refunds, the direct tax collection stood at Rs 19.21 lakh crore till December 17 FY25, an 20.32 percent growth over the year-ago period.