Government likely to surpass ₹22.07 lakh crore direct tax target for FY25: CBDT
The government is on track to exceed its direct tax collection target of ₹22.07 lakh crore for the 2024-25 fiscal, driven by significant contributions from corporate and individual tax revenues. As of November 10, net direct tax collections have grown by 15.41% year-on-year, reaching ₹12.11 lakh crore. This includes ₹5.10 lakh crore from corporate taxes and ₹6.62 lakh crore from personal and other taxes. Additionally, ₹35,923 crore has been collected through Securities Transaction Tax (STT), according to CBDT data.
“We are confident of surpassing the budgeted target, supported by healthy growth in corporate and personal income tax collections,” Agarwal said while inaugurating the Taxpayers Lounge at the India International Trade Fair (IITF).
Greater Emphasis on Foreign Asset Disclosure
Individuals who have not declared foreign income or assets in their Income Tax Returns (ITRs) for FY24 have until December 31 to submit revised returns. Through automatic information exchange agreements with other countries, the department is cross-checking undeclared foreign assets—such as bank accounts, equity investments, and immovable property—with ITR filings. “Our goal is to remind taxpayers of their responsibilities and promote voluntary compliance,” Agarwal said.
Modernizing the Income-Tax Act
The CBDT is also working to simplify the Income-tax Act, 1961, to make it more concise and user-friendly. So far, over 6,000 suggestions have been received from the public. To address these, 22 specialized sub-committees have been formed to review different sections of the Act.
Agarwal invited additional feedback from stakeholders, emphasizing the importance of incorporating global best practices to enhance clarity and reduce litigation. This initiative aligns with Finance Minister Nirmala Sitharaman’s directive to modernize the tax framework, improve compliance, and streamline the taxpayer experience.
These reforms aim to align India’s tax laws with current economic realities while fostering greater certainty for businesses and individuals.
