The net direct tax collection for FY25 reached ₹22.26 lakh crore, reflecting a strong year-on-year growth of 13.48%, according to a statement presented in the Lok Sabha by Minister of State for Finance, Pankaj Chaudhary. The minister attributed the increase in tax revenue to reforms such as the reduction in corporate tax rates, effective from the Assessment Year (AY) 2020&ndash;21.
Since FY 2021&ndash;22, net direct tax collections have consistently shown robust growth. The government estimates that the revenue impact of tax benefits extended to companies was ₹88,109 crore in FY 2022&ndash;23 and is projected to be ₹98,999 crore for FY 2023&ndash;24.
&ldquo;These tax incentives have made Indian corporates more competitive, encouraged investments, and supported economic growth,&rdquo; Chaudhary said.
He also highlighted the impact of government initiatives on the startup ecosystem. The number of startups claiming tax deductions under Section 80IAC of the Income Tax Act increased from 328 in AY 2022&ndash;23 to 877 in AY 2024&ndash;25. Similarly, companies claiming benefits under Section 80JJAA&mdash;related to the employment of new workers&mdash;rose from 2,838 to 3,644 during the same period.
Chaudhary emphasized that tax incentives outlined in the Finance Bill have contributed to job creation, higher revenue, and economic development. As part of efforts to build a globally competitive environment, the government had introduced Sections 115BAA and 115BAB in the Income Tax Act through the Taxation Laws (Amendment) Act, 2019.
The result of these changes is evident in the surge of newly registered manufacturing companies, which grew from 2,928 in AY 2022&ndash;23 to 7,185 in AY 2024&ndash;25.
Additionally, India&rsquo;s gross direct tax collections (before refunds) have more than doubled in the past five years, a trend driven by economic expansion and better tax compliance, further supported by digital reforms in the tax system. [Except for the headline, this article has not been edited by the Benefit News editorial team and is published directly from the IANS news feed]

Direct Tax Collection Grows Post Corporate Tax Cut

FY25 net direct tax collection rises 13.5% to ₹22.26 lakh crore, driven by policy reforms

Direct Tax Collection Grows Post Corporate Tax Cut

FY25 net direct tax collection rises 13.5% to ₹22.26 lakh crore, driven by policy reforms

August 4, 2025 | 15:19 IST