News

Published: October 16, 2024
Updated: October 16, 2024

Direct Tax Collections Soar by 182% in a Decade, Surpassing ₹19.60 Lakh Crore in FY24

Unprecedented Growth in Direct Tax Revenue

India's direct tax collections have witnessed a remarkable 182% growth over the last decade, rising to over ₹19.60 lakh crore in the financial year 2023-24. This surge has been fueled by significant increases in both corporate tax and personal income tax collections during the tenure of Prime Minister Narendra Modi's government.

Corporate Tax Collections Double

According to the latest "Time Series Data" from the Income Tax Department, corporate tax collections more than doubled over the past ten years. In FY24, corporate tax revenue stood at over ₹9.11 lakh crore, a significant jump from the ₹4.29 lakh crore collected in 2014-15, the first year of the Modi government.

Personal Income Tax Sees Fourfold Rise

Personal income tax collections also saw tremendous growth, nearly quadrupling during the same period. In FY24, personal income tax revenues reached ₹10.45 lakh crore, up from ₹2.66 lakh crore in FY15. This demonstrates the increasing contribution of individual taxpayers to the government's revenue.

Increase in Income Tax Returns Filed

The number of income tax returns filed has more than doubled in the last decade, growing from over 4.04 crore in 2014-15 to over 8.61 crore in 2023-24. This expansion reflects the increasing tax base, with more individuals and businesses contributing to the nation's direct tax revenue.

Tax-to-GDP Ratio and Tax Buoyancy on the Rise

India's direct tax-to-GDP ratio, an important metric for assessing the efficiency of tax collection relative to economic growth, increased from 5.55% in FY15 to 6.64% in FY24. Tax buoyancy, which measures the effectiveness of revenue generation in response to GDP growth, also improved significantly, rising from 0.86 to 2.12 over the decade.

Significant Growth in the Taxpayer Base

The number of taxpayers in India has seen a substantial increase, jumping from 5.70 crore in Assessment Year (AY) 2014-15 to 10.41 crore in AY 2023-24. This reflects both increased income levels and enhanced efforts by the government to widen the tax net.

The decade-long period of growth in direct tax collections under the Modi administration reflects a robust economy, increased taxpayer participation, and improved tax administration. With the government continuing to focus on broadening the tax base and ensuring compliance, the upward trajectory of direct tax revenues is expected to continue in the coming years.