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India's direct tax collections have registered a robust year-on-year (YoY) growth of 19.06 per cent, reaching Rs 21.88 lakh crore in the ongoing financial year up to 10 February 2025, according to data released by the Income Tax Department.

The rise in collections has been attributed to higher corporate and non-corporate tax revenues, alongside a significant surge in securities transaction tax (STT) receipts.

The gross direct tax collection for the current fiscal stood at Rs 21,88,508 crore, marking an increase from Rs 18,38,194 crore collected during the corresponding period last year. The growth has been primarily driven by corporate tax (CT) and non-corporate tax (NCT) contributions.

Corporate tax collections have risen to Rs 10,08,207 crore from Rs 8,74,561 crore in the previous fiscal, while non-corporate tax collections have increased to Rs 11,28,040 crore from Rs 9,30,364 crore last year.

Furthermore, securities transaction tax (STT) collections have experienced a significant jump, reaching Rs 49,201 crore, compared to Rs 29,808 crore in the previous year.

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Direct taxes encompass levies paid directly by individuals and businesses to the government, including income tax, corporate tax, and securities transaction tax.

However, other taxes, including wealth tax, witnessed a marginal decline from Rs 3,461 crore to Rs 3,059 crore.

After adjusting for refunds, which have surged by 42.63 per cent to Rs 4,10,105 crore, net direct tax collections have reached Rs 17,78,402 crore, reflecting a 14.69 per cent rise over the Rs 15,50,663 crore recorded in the same period last year.

The increase in direct tax revenue augurs well for India's fiscal health, bolstering government finances while reducing dependence on external borrowing.

This expansion in revenue suggests economic resilience amid global uncertainties. Higher tax collections could enable the government to enhance public spending in infrastructure, social welfare, and other key sectors, fostering economic growth.

With two months remaining in the financial year, direct tax collections are expected to exceed budget estimates. 

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