Direct tax-GDP ratio nearly doubles this fiscal — A sign of economic recovery

The Indian economy is gradually recovering, and when examining the contributions made by citizens to the overall output, the direct tax to GDP ratio for FY24 stood at 2.12, compared to 1.18 in FY23, although it remains lower than the FY22 level of 2.52.

According to time-series data released by the Income Tax Department on Thursday, the contribution of direct taxes to total revenues increased from 54.63%, ot ₹16.63 lakh crore, in FY23 to 56.72,% or  ₹19.60 lakh crore, in FY24.

Additionally, the number of Income Tax Return filings rose from 74 million in FY23 to 81 million in FY24. Among these, the number of individuals filing income tax returns increased from nearly 70 million in FY23 to 76.3 million in FY24.

On the corporate side, the number of corporate tax filers slightly increased, rising to 100.8 million in FY24 from 102,7 million in FY23. Overall, the total number of taxpayers in the country, including both filers and non-filers, significantly increased to 104.1 million in FY24, up from 93.7 crore in FY23.

When examining state-wise contributions, Maharashtra contributed the most to income tax collections in FY24. The top four states in terms of income tax collections for FY24 are:

1. Maharashtra: ₹7.61 lakh crore

2. Karnataka: ₹2.34 lakh crore

3. Delhi: ₹2.03 lakh crore

4. Tamil Nadu: ₹1.27 lakh crore

Also read: GoM on compensation cess discusses its merger into taxes