Key Points
New Delhi: Income tax from individuals now comprises more than 30 percent of the governments total tax receipts, significantly exceeding the contribution of taxes paid by companies, new data from the Income Tax Department shows.. The data, made public by the I-T department Thursday for the period 2000-01 to 2023-24, shows that the government is increasingly reliant upon direct taxesa combination of personal income tax, corporate tax and a small segment called other taxesrather than indirect taxes, such as the Goods and Services Tax, excise duties and customs duties...
Within this, the data highlights the growing share of personal income tax within both direct taxes as well as total tax collections...
The share of personal income tax in direct taxes crossed the 50 percent marksignifying higher reliance on it rather than on corporate taxesfor the first time in 2020-21...
Corporate tax revenues did grow 64 percent since the rate cut, the data shows, but personal income tax collections grew 112 percent over this period, resulting in a significantly lower share of corporate tax collections in overall direct tax revenue...
A combination of these two trendshigher reliance on direct taxes and, within this, a higher reliance on income taxhas meant that Indias overall tax collections are more reliant on taxes paid by individuals than ever before...
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