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Aug 28, 2025
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India’s personal income tax collections now bigger than corporate tax mop-up
Income tax news: Personal income tax collections have surpassed corporate taxes for the first time in India’s history. According to a report by JM Financial Institutional Securities, this is because of formalisation, digitisation and stronger compliance mechanisms.
Personal Tax Share up
The share of personal income tax in total direct taxes has gone up sharply from 38.1% in FY14 to 53.4% in FY24. Corporate tax collections have come down from 61.9% to 46.6% over the same period.
India’s direct tax compliance has undergone a huge change in the last decade. Number of individual income tax return filers has gone up 2.3 times, from 30.5 million in FY14 to 69.7 million in FY23. When including those who pay tax through TDS without filing returns, the taxpayer base has nearly doubled from 53.8 million to 99.2 million.
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