India’s direct tax collection has seen significant growth under Prime Minister Narendra Modi’s leadership, increasing by 182% over the last decade. In FY 2023-24, personal income tax collection quadrupled to ₹10.45 lakh crore compared to 2014-15.

Between April 1 and November 10, 2024, the Indian government’s net direct tax collection rose by 15.4% to ₹12.1 trillion (approximately $143 billion). Gross direct tax, including corporate and personal taxes, surged by over 21% to ₹15 trillion during this period. The Income Tax Department reported issuing refunds worth ₹2.92 lakh crore, a significant annual increase of 53%.

• Net Corporate Tax: ₹5.10 lakh crore
• Non-Corporate Tax: ₹6.62 lakh crore
• Other Taxes: ₹35,923 crore

The government has set a target of ₹22.12 lakh crore for direct tax collection in the current financial year, marking a 13% increase compared to the previous fiscal year.

In 2014-15, the first year of the Modi government, direct tax collection stood at approximately ₹6.96 lakh crore, which included:

• Corporate Tax: ₹4.29 lakh crore
• Personal Income Tax: ₹2.66 lakh crore

As of FY 2023-24, income tax returns filed have more than doubled, from 4.04 crore in 2014-15 to 8.61 crore.

Direct tax is levied directly on the taxpayer, who pays it directly to the government without passing the burden onto others. It includes taxes like corporate tax and personal income tax.