Direct tax mopup 20% bigger in FY25 on income tax boost

Direct tax collections have seen a significant increase of nearly 20% to ₹5.74 lakh crore in FY25 so far, with personal income tax flows driving the surge. The government may have more fiscal flexibility in the upcoming budget presentation. Corporate profits are also on the rise, reflected in the advance tax collections. These positive trends could impact the fiscal deficit in the budget for this fiscal year.