Context: In FY2023-24, India’s direct tax collections reached a significant milestone, constituting 56.72% of total tax revenue, the highest in 14 years.
Key data released by the Central Board of Direct Taxes (CBDT) report:
| Parameter | FY2023-24 | Comparison/Trend |
| Direct Tax to Total Tax Revenue | 56.72% | Highest since FY2010 (60.78%) |
| Indirect Tax to Total Tax Revenue | 43.28% | Decreased from FY2022-23 |
| Direct Tax to GDP Ratio | 6.64% | Highest in over 20 years |
| Personal Income Tax Collection | ₹10.45 lakh crore | Higher than corporate tax collection |
| Corporate Tax Collection | ₹9.11 lakh crore | Lower due to 2019 corporate tax rate cuts |
| Tax Buoyancy | 2.12 | Improved from 1.18 in FY2022-23 |
| Income Tax Filers | 8.09 crore | Up from 7.4 crore in FY2022-23 |
| Total Taxpayers | 10.41 crore | Up from 9.37 crore in FY2022-23 |
| Cost of Tax Collection | 0.44% | Lowest since 2000-01 |
| Assessment Year | 2023-24 | Increased number of taxpayers |
Usage in UPSC syllabus:
- Economy (Growth and Development): The data reflects tax buoyancy and its relation to economic growth, relevant for topics like Taxation Policies, Fiscal Responsibility, and Public Finance.
- Public Administration and Governance: Insights into tax reforms, the impact of the corporate tax cut, and the changing dynamics of direct vs indirect taxation are crucial for understanding fiscal governance and public sector efficiency.
- Social Issues and Policy: Understanding how direct taxation (linked to income) affects wealth redistribution and impacts various socioeconomic groups aligns with equity and justice in economic policies.
