India’s net direct tax collections have surged by 13.13% to over Rs 21.26 lakh crore so far this fiscal year, according to government data released on Monday.
This growth is largely attributed to higher advance tax collections, with the government collecting Rs 10.44 lakh crore from four instalments of advance tax, compared to Rs 9.11 lakh crore in the previous fiscal—estimating a growth of 14.62%.
The final instalment of advance tax payment was due on March 15, 2025, for the current financial year.
Advance tax collection breakdown
- Corporate Tax: Advance tax collections under the corporate tax category rose by 12.54%, reaching Rs 7.57 lakh crore.
- Non-Corporate Tax:
Non-corporate tax collections , including personal income tax, saw a more significant increase of 20.47%, totalling Rs 2.87 lakh crore during the fiscal year.
Under Section 208 of the Income Tax Act, individuals with an estimated tax liability over Rs 10,000 (after accounting for tax deducted at source – TDS and TCS) are required to pay advance tax. This includes salaried individuals.
Tax payment schedule
Advance tax is paid in four instalments: June 15, September 15, December 15, and March 15 of the financial year.
Non-corporate tax collections up by 17%
According to data released by the Central Board of Direct Taxes (CBDT), the total mop-up from net non-corporate taxes, primarily personal income tax, grew by 17% year-on-year to approximately Rs 11.01 lakh crore.
In contrast, net corporate tax collections grew at a slower pace, rising by 7% to Rs 9.69 lakh crore between April 1, 2024, and March 16, 2025.
Securities Transaction Tax (STT)
Net collections from securities transaction tax (STT) saw a remarkable surge of nearly 56%, reaching Rs 53,095 crore so far this fiscal year.
Refunds and gross tax collection
Refunds issued during this period amounted to more than Rs 4.60 lakh crore, up from Rs 3.47 lakh crore in the previous year. Gross direct tax collections till March 16 grew by 16.15%, totalling over Rs 25.86 lakh crore.
Revised estimates for direct tax collections
For the current fiscal year, the government has revised its income tax collection estimate to Rs 12.57 lakh crore, higher than the initial budget estimate of Rs 11.87 lakh crore. The STT collection estimate has also been revised upward to Rs 55,000 crore, from the budget estimate of Rs 37,000 crore.
However, the corporate tax collection target has been revised lower to Rs 9.80 lakh crore, down from the budget target of Rs 10.20 lakh crore.
In total, the revised estimates (RE) for direct tax collections stand at Rs 22.37 lakh crore, slightly higher than the budget estimate of Rs 22.07 lakh crore.
