India’s net direct tax collections for the fiscal year ended March 2024 recorded a significant increase, surpassing the revised estimates. According to official data released on Sunday, net direct tax collections surged 17.7% year-on-year to ₹19.58 lakh crore. This growth surpassed the budget estimates by ₹1.35 lakh crore, indicating a positive revenue trend for the government.

The higher net direct tax collections provide the Centre with the required headroom to meet its fiscal deficit target for FY24. The Centre had initially budgeted ₹18.23 lakh crore as net direct tax revenue for the fiscal year, which was later revised to ₹19.45 lakh crore.

The increase in direct tax collections is encouraging news for the Indian economy as it goes through general elections. It signifies macroeconomic buoyancy and reflects a positive outlook for the continuity of fiscal discipline. This positive trend is expected to support the incoming administration in implementing policy reforms aimed at improving taxpayer services and driving economic growth.

Both corporate and personal income tax saw substantial growth during this period. Net corporate tax collections stood at ₹9.11 lakh crore, representing a 10.26% increase from the previous fiscal year. Net personal income tax collections reached ₹10.44 lakh crore, showing a remarkable growth of 25.23% compared to FY23.

Gross direct tax collections for 2023-24 stood at ₹23.37 lakh crore, a notable growth of 18.48% compared to the previous fiscal year. The Centre also issued refunds worth ₹3.79 lakh crore during this period, providing relief to taxpayers.

Notably, indirect tax collections have also exceeded the revised estimates, further strengthening India’s fiscal position. The robust growth in direct and indirect tax collections indicates a positive trajectory for the Indian economy and offers the government the flexibility to implement effective policy measures to drive economic growth and development.