Direct tax collections surge 182% in a decade to over Rs 19.60 lakh crore in FY24

NEW DELHI: Direct tax collections registered a growth of 182% over the past decade, with net collections surging from Rs 6.95 lakh crore in FY15 to Rs 19.60 lakh crore in FY24. The growth is primarily attributed to rise in personal income tax collections, which increased by 294.3%, reaching Rs 10.45 lakh crore in FY24 compared to Rs 2.65 lakh crore in FY15.
Additionally, the corporate tax collections increased 112.85%, rising from Rs 4.28 lakh crore in FY15 to Rs 9.11 lakh crore in FY24.
The number of income tax returns filed, including revised returns increased from over 4.04 crore in the 2014-15 fiscal year to more than 8.61 crore in 2023-24.
Moreover, the direct tax-to-GDP ratio has improved from 5.55 per cent in 2014-15 to 6.64 per cent in 2023-24, indicating a stronger contribution of direct taxes to the country’s economic growth. The tax buoyancy, a measure of revenue mobilisation efficiency in relation to GDP growth, has also increased from 0.86 to 2.12 during this period, showcasing the effectiveness of tax collection efforts.
The number of taxpayers has expanded from 5.70 crore in the Assessment Year (AY) 2014-15 to 10.41 crore in the 2023-24 AY, reflecting a broader tax base and increased participation in the formal economy.