India’s direct tax collections for the current fiscal remain on track with expectations and revised estimates outlined in the Union Budget, backed by healthy personal tax collections. As of 16th March 2025, gross direct tax collections have risen by 16.2% year-on-year (YoY) to ₹25.87 lakh crore.

Tax refunds for the fiscal up to 16th March grew by 32.51% to ₹4.60 lakh crore, compared to ₹3.47 lakh crore in the same period last year. Meanwhile, net direct tax collections increased by 13.13% to ₹21.26 lakh crore from ₹18.80 lakh crore in the previous year.

Key direct tax collections (April 1, 2024 – March 16, 2025)

Stock market activity contributed significantly to tax revenue growth. Net Securities Transaction Tax (STT) collections surged 55% to ₹53,095 crore as of March 16, 2025, compared to ₹34,131 crore in the same period last year.

The government released these figures on March 17, following the assessment of advance tax collections due on March 15 for the final installment of the fiscal year.

Advance tax collections (as of March 16, 2025)

Advance tax collections stood at ₹10.44 lakh crore, reflecting a 14.62% YoY increase from ₹9.11 lakh crore.

Experts note that these figures align with the government’s estimates presented on 1st February. Rohinton Sidhwa, Partner at Deloitte India, highlighted that while personal tax and STT collections continue to see healthy growth, corporate tax collections remain subdued.

“While the revised estimate for corporation tax was revised downwards from 10.2 lakh crore to 9.8 lakh crore, the overall non-corporate estimate was revised upwards from 11.87 lakh crore to 12.57 lakh crore. This trend shows an increasing reliance and growth on personal taxes as opposed to corporate income tax. Corporate earnings slowing down is showing up in lower corporate tax collections. Similarly, a slowdown in STT growth is also indicative of the current state of the capital markets,” Sidhwa said.