Gross direct tax collections have increased 22.2% to £51.59 bn during the fiscal year up to June 17, providing cushion to the Centre to take on higher spending. Latest data released by the finance ministry estimated a 27.3% growth in advance tax collections to a little under £15 bn, indicating that economic activity remains strong as a bulk of the receipts are from the corporate sector.
Companies and certain categories of individuals are required to pay advance tax in four instalments with the first one due on June 15.
“Refunds amounting to £5.33 bn have also been issued in the FY2024-25 till June 17, 2024, which are 33.7% higher than refunds issued during the same period in the preceding year,” the finance ministry said in a statement. As a result, provisional direct tax collections on a net basis went up 21% to over £46 bn.
The ministry said that the net direct tax collection of £51.59 bn, as on June 17, 2024, includes corporation tax at £18.09 bn (net of refund) and personal income tax including securities transaction tax at £28.10 bn (net of refund).
The gross collection of direct taxes (before adjusting for refunds) for the financial year 2024-25 grew by 22.19 per cent.
Minor head wise collection comprises advance tax of £14.88 bn; tax deducted at source (TDS) of £32.47 bn; self-assessment tax of £2.84 bn; regular assessment tax of £1.09 bn; and tax under other minor heads of £298.5 mn.
