New Delhi, Aug 4
The net direct tax collection saw strong growth in FY25 at Rs 22,26,375 crore, a 13.48 per cent year-on-year growth, as there has been an overall increase in collections after reduction of the corporate tax rates with effect from Assessment year (AY) 2020-21, the Parliament was informed on Monday.
Since FY 2021-22, the growth in net direct tax collection has been robust, Minister of State for Finance, Pankaj Chaudhary, told the Lok Sabha in a written reply.
The total revenue impact on account of tax benefits extended to companies was Rs 88,109.27 crore and Rs 98,999.57 crore (projected) in FY 2022-23 and FY 2023-24, respectively.
"The above tax benefits have the impact of making the corporates competitive and encouraging investment and, therefore, economic growth," the minister said.
To encourage startups, initiatives taken have resulted in an increase in the number of startups claiming deduction under Section 80IAC of the Income Tax Act from 328 in AY 2022-23 to 877 in AY 2024-25.