New Delhi: Over the past decade, India has seen a significant growth in personal income tax collections compared to corporate tax collections. This can be attributed to improved compliance measures and a decrease in corporate tax rates, as per the latest data released by the Central Board of Direct Taxes.
Personal income tax collections have seen a staggering 294.3% increase, reaching ₹10.45 lakh crore in FY24 from ₹2.65 lakh crore in FY15. Meanwhile, corporate tax collections have risen by 112.85% to ₹9.11 lakh crore from ₹4.28 lakh crore in FY15. The total number of taxpayers has also surged to 10.41 crore, up from 5.70 crore in FY15. Additionally, the number of tax returns filed has more than doubled to 8.61 crore in 2024 from 4.04 crore in FY15.
The tax-to-GDP ratio has shown a significant improvement, reaching 6.64% in FY25 compared to 5.55% in FY15. Tax buoyancy has increased to 2.12 from 0.86, with direct tax contributions to the overall tax revenue increasing marginally to 56.72% in FY24 from 56.16% in FY15.
When looking at individual states, Maharashtra, Karnataka, Delhi, Tamil Nadu, and Gujarat have contributed over 72% of the net direct tax collections, amounting to ₹14.19 lakh crore out of ₹19.61 lakh crore. Maharashtra alone accounted for ₹7.61 lakh crore, nearly one-third of the total net direct tax collections. Eight states have reported net collections exceeding ₹50,000 crore.
Overall, the increase in personal income tax collections and improved compliance are positive indicators for India’s tax system and economy.
