India's Tax Collection Growth 2025: India’s tax collection from companies and individuals grew by nearly 15 percent  in the  year 2025, reaching over Rs.17.78 lakh crore by February 10, 2025. This shows an increase from Rs. 15.51 lakh crore collected during the corresponding period last year, said the Central Board of Direct Taxes (CBDT) in its release.

Total direct tax revenue, before refunds, rose by 19 percent to Rs.21.88 lakh crore, compared to Rs.18.38 lakh crore iin 2024. At the same time, Personal income tax collections witnessed  a big rise of 21 percent, reaching Rs.9.48 lakh crore. Corporate tax collections also went up by more than 6 percent, exceeding Rs.7.78 lakh-Cr.

One of the biggest the record of increase was in the Securities Transaction Tax (STT), which rose by 65 percent , registering Rs.49,201 crore. At the same time, tax refunds issued by the government rose by 42.63 percent , reaching Rs.4.10 lakh crore. Officials say,  this shows that the income tax refund process has become faster and more transperent.

The steady rise in tax collection shows strong corporate earnings and higher individual incomes, particularly with more employment oppoortunites being created in the manufacturing and services sectors. This growth in revenue helps the the government invest in major projects such as infrastructure & welfare schemes.

Higher tax collection also helps cut the government’s borrowing needs, keeping more funds available for companies. This supports economic growth, job creation, and keeps inflation under control, making the economy more stable.

In the union budget speech 2025, Finance Minister Nirmala  Sitharaman said that the new Income Tax Bill would bring more clarity. She promised that the bill would be clear and direct. The Finance Minister said that one of the key goals of the new law is to reduce tax-related disputes and litigation, offering certainty to taxpayers.