India's direct tax collections have seen an unprecedented surge of 182% in the decade under Prime Minister Narendra Modi's leadership, crossing ₹19.60 trillion in the fiscal year 2023-24. According to the latest 'Time Series Data' released by the Income Tax Department, corporate tax collections more than doubled to ₹9.11 trillion, while personal income tax nearly quadrupled, reaching ₹10.45 trillion during the same period.
In comparison, during the Modi government's first fiscal year, 2014-15, direct tax collections were around ₹6.96 trillion. This included ₹4.29 trillion in corporate tax and ₹2.66 trillion in personal income tax. The significant increase highlights the government's success in broadening the tax base and improving compliance.
The number of income tax returns filed has also more than doubled, rising from 4.04 crore in 2014-15 to over 8.61 crore in 2023-24. The tax-to-GDP ratio improved from 5.55% in 2014-15 to 6.64% in 2023-24, reflecting enhanced revenue mobilization efficiency. Additionally, tax buoyancy, an indicator of the government's efficiency in collecting taxes relative to GDP growth, surged from 0.86 to 2.12 over the past decade.
The total number of taxpayers also grew significantly, from 5.70 crore in AY 2014-15 to 10.41 crore in AY 2023-24. These statistics underscore the Modi government's reforms in tax administration, digitalization, and efforts to improve transparency in the tax filing process.
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