Finance Minister made income up to 12 lakhs tax free, common man filled the government's coffers
Direct Tax Revenue: There is still about one and a half month left in the current financial year, but this year has been better for the government in terms of tax collection so far. Its effect was seen on the figures from corporate tax collection to personal income tax.
Income Tax Collection Jump: During the general budget, the Finance Minister had given a big relief to the middle class taxpayers.
By making the income of Rs 12 lakh per annum tax free, the Finance Minister gave such a gift to the common man, which no one expected. When the government gave such good news, how could the common man stay behind?
In the current financial year 2024-25, so far the country's net direct tax collection has increased by 14.69 percent to more than Rs 17.78 lakh crore.
Personal income tax increased by 21 percent
According to the data released by the Central Board of Direct Taxes (CBDT), non-corporate tax collection (personal income tax) increased by 21 percent to about 9.48 lakh crores as compared to last year.
Between April 1, 2024 and February 10, 2025, net corporate tax collection increased by more than 6 percent to cross Rs 7.78 lakh crore. So far this financial year, net collection from Securities Transaction Tax (STT) has increased by 65 percent to Rs 49,201 crore.
STT is estimated to be Rs 55000 crore
During this period, refunds of more than Rs 4.10 lakh crore were processed, which is 42.63 percent more than the same period last year. Till February 10, gross direct tax collection increased by 19.06 percent to more than Rs 21.88 lakh crore.
In the revised estimate (RE) of the current financial year, the government has estimated income tax collection to be Rs 12.57 lakh crore, which is more than the budget estimate (BE) of Rs 11.87 lakh crore.
Securities Transaction Tax (STT) is estimated to be Rs 55,000 crore in this financial year, which is more than the budget estimate (BE) of Rs 37,000 crore.
Revised tax target raised to Rs 9.80 lakh crore
Corporate tax collection has been revised to Rs 9.80 lakh crore, lower than the budget target of Rs 10.20 lakh crore. Overall, the revised estimate pegs direct tax collection at Rs 22.37 lakh crore, higher than the budget estimate of Rs 22.07 lakh crore.
The Union Cabinet approved the new Income Tax Bill on February 7. The new Direct Tax Code is expected to be introduced in the Lok Sabha this week.
The new tax bill is part of a larger effort to reform the country's tax system and aims to make it more systematic and transparent by improving the existing tax structure.
At the same time, Finance Minister Sitharaman had indicated that the bill would be sent to a parliamentary committee for scrutiny.