Latest figures compiled by Income Tax Department reveals that India’s net direct tax collection observes a robust surge of 19.5 percent as it reaches to Rs 5.74 lakh as on till July 11 of the current financial year (2024-25) compared to the same period of the previous year.
From April 1 to July 11, net corporate tax revenues jumped 12.5% to Rs 2.1 lakh crore compared to the same period in the previous year, while personal income tax, which includes securities transaction tax, increased by 24% to Rs 3.64 lakh crore.
According to the numbers, gross direct tax revenues, exclusive of refunds, increased 23.2% to Rs 6.45 lakh during the same time last year.
Additionally, direct tax refunds increased by 64.5% during the current fiscal year, reaching Rs 70,902 crore between April 1 and July 11.
The strong tax collection will add to the government’s ability to manage the fiscal deficit as it prepares to unveil the entire 2024–15 budget on July 3.
Also Read: India’s Resilient Growth Continues As Forex Reserves Hit Record High
The RBI’s substantial dividend of Rs 2.11 lakh crore, coupled with strong direct tax and GST receipts, would provide the Finance Minister with the necessary leeway to advance policies that accelerate economic growth and execute social welfare programs that elevate the impoverished.
From more than 9% of GDP in 2020–21 to the desired level of 5.1% for 2024–25, the budget deficit has been decreased. S&P Global Rating upgraded India’s sovereign rating outlook from “stable” to “positive,” highlighting the nation’s robust economic development and strengthening financial situation.
RBI to submit entire budget after surge in direct tax collection
The Finance Minister will now submit the entire budget for 2024–25, which will guarantee that the economy maintains its strong growth trajectory and adds more jobs during the third term of the Modi administration, following the presentation of an interim budget ahead of the Lok Sabha elections.
It is likely that Sitharaman may raise the income tax exemption threshold in order to provide some respite to the middle class. Customers would have more discretionary income as a result, which would raise demand and support economic expansion.
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