Tax refund crosses Rs 2 lakh crore mark in FY25

New Delhi, Sep 18 (SocialNews.XYZ) The income tax department's efficiency has rapidly increased in the last decade as refunds out of direct tax collection crossed the Rs 2 lakh mark in the financial year (FY) 2024-25, according to government data.

According to the data, direct tax collection in the current financial year (From April 1 to September 17) was Rs 9.95 lakh crore, up 16.12 per cent compared to the same period last year.

Tax refunds also jumped during this period and have increased by 56.49 per cent to Rs 2.05 lakh crore compared to last year.

Securities Transaction Tax (STT) collection has increased to Rs 26,154 crore.

Advance tax collection has increased by 22.61 per cent on an annual basis to Rs 4.36 lakh crore. Advance personal income collection has increased by 39.22 per cent. There has been an increase of 18.17 per cent in corporate tax.

During the period, gross direct tax collection including refunds has increased by 21.48 per cent to Rs 12.01 lakh crore.

In the current financial year, the government has set a target of collecting Rs 22.12 lakh crore from direct taxes (personal income tax, corporate tax and other taxes), which is about 13 per cent more compared to the last financial year.

According to Finance Minister Nirmala Sitharaman, the average processing time of ITR has been reduced from 93 days in 2013 to 10 days now, thereby making refunds faster.

This has been achieved by the introduction of updated income tax returns systems and processes and simplification of the person tax regime over the years which has made filing tax returns easier.

The reason for the increase in direct tax collection is the strong GDP growth. The Indian economy grew at the rate of 8.4 per cent in the FY 2023-24. It is expected to grow at the rate of 7.2 per cent in FY 2024-25.

Source: IANS