Data released by the Central Board of Direct Taxes (CBDT) under the Ministry of Finance shows contribution of direct taxes to total tax revenue climbed to 56.72 per cent in FY24, the highest in 14 years. 

Key Highlights of the Data

• Direct tax-to-GDP ratio is the share of direct taxes in the overall economic output in the country.
  • Direct tax-to-GDP ratio jumped to over a two-decade high of 6.64 per cent
• Direct tax to total tax revenue : Increased to  56.72 %  from last year 54.63 %
• Indirect taxes to total tax revenue: Reduced to 43.28%  from last year’s 45.37%.
• In 2020-21 → Indirect Tax > Direct Tax 

• State-wise Contribution in direct tax: Maharashtra (39 %)  > Karnataka (12%) >  Delhi (10.4%)
• Tax Buoyancy: Explains the relationship between the changes in the government’s tax revenue growth and the changes in Gross domestic product (GDP).
  • When a tax is buoyant the revenue increases without increasing the tax rate.
• Tax Buoyancy  grew to 2.12 in 2023-24 from 1.18 in the previous financial year.
• Increase in Income tax filers: The increase in collections was accompanied by an increase in returns filed, income tax return filers and taxpayers. 
  • Income tax return filers increased to 8.09 crore in FY24 from 7.4 crore in FY23.
  • In the assessment year 2023-24 taxpayers increased to 10.4 crore(FY23) from 9.37 crore( FY22).

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Classification of Taxation in India