Current Affairs: Passage of the Day - 20 December 2024 | Current Affairs & General Knowledge - CLAT PDF Download

Directions: Read the passage carefully and answer the questions that follow.
Gross direct tax collection in 2024-25 as of December 17 saw a 20.32% year-on-year jump to ₹19.21 lakh crore, but net collection during this period saw a 16.45% increase to ₹15.82 lakh crore due to higher refunds of ₹3.39 lakh crore, particularly on account of corporates, government data said.
Gross corporate tax (CT) collection in the current financial year (as of December 17, 2024) posted 16.92% annualised growth to ₹9,24,693 crore, but the net collection saw only an 8.57% year-on-year increase on account of higher refunds. Refunds to corporates jumped 70.32% to ₹1,82,086 crore as compared to ₹1,06,904 crore in FY24 (as of December 17, 2023), according to data released on Wednesday.
Gross non-corporate tax (NCT), which mainly includes individual income-tax revenue, posted a jump of a little over 22% to ₹9,53,871 crore in 2024-25 (up to December 17) as compared to ₹7,81,737 crore in the same period last year.
The income-tax department has reclassified personal income tax or individual income tax as NCT by clubbing with other minor heads, including taxes paid by entities such as local authorities and artificial juridical persons.
The tax department has issued refunds to the tune of ₹1,56,792 crore in 2024-25, an increase of about 19.78% over the ₹1,30,901 crore refunded last year during the corresponding period.
The net NCT has risen 22.47% to ₹7,97,080 crore, in 2024-25 up to December 17.
As defined by the government, a direct tax is a kind of charge that is imposed directly on the taxpayer and paid directly to the government by the persons (juristic or natural) on whom it is imposed. It cannot be shifted by the taxpayer to someone else. However, an indirect tax is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the customer). An indirect tax is one that can be shifted by the taxpayer to someone else.
Comparative data showed the growth rate for direct tax was stronger as compared to indirect tax (goods and services tax or GST).
According to data released on December 1, GST revenue in November saw a single-digit growth. Gross GST revenue collection in November increased by 8.5% to ₹1,82,269 crore compared to ₹1,67,929 crore collected in the same month last year, while the net collection after refunds saw an 11.1% jump at ₹1,63,010 crore as against ₹1,46,786 crore.
According to the latest GST data, cumulative revenues in eight months of FY25 increased by 9.3% on an annualised basis to ₹14,56,711 crore. The net collections in April-November 2024 saw a single-digit annualised growth at 9.2% ₹12,90,616 crore.
The historical data show that the share of direct taxes in total tax revenue has gradually increased and it surpassed the indirect tax since 2007-08, when its share in total tax kitty rose to 52.97%. It, however, fell below 50% twice in the last 10 years – in 2016-17 (49.65%) and in 2020-21 (46.84%). In 2023-24, it was 56.72%.
[Excerpt from HT "Direct Tax Collection Surges in 2024-25" Dated 20/12/24]

Q1: What is the reported growth percentage in direct tax collections for FY 2024-25?
(a) 15.82%
(b) 16%
(c) 20.32%
(d) 19.21%

View Answer  

Ans: (c)
Sol: The direct tax collections have grown by 20.32% compared to the previous year.

Q2: How much did the total direct tax collections surpass in FY 2024-25?
(a) ₹9.24 lakh crore
(b) ₹15.82 lakh crore
(c) ₹19.21 lakh crore
(d) ₹3.38 lakh crore

View Answer  

Ans: (c)
Sol: Total direct tax collections surpassed ₹19.21 lakh crore.

Q3: What is the contribution of corporate tax to the total direct tax collections?
(a) ₹9.53 lakh crore
(b) ₹15.82 lakh crore
(c) ₹3.38 lakh crore
(d) ₹9.24 lakh crore

View Answer  

Ans: (d)
Sol: Corporate tax contributed over ₹9.24 lakh crore.

Q4: How much has the Income Tax Department issued in refunds for FY 2024-25?
(a) ₹19.21 lakh crore
(b) ₹15.82 lakh crore
(c) ₹3.38 lakh crore
(d) ₹9.24 lakh crore

View Answer  

Ans: (c)
Sol: Refunds amounting to over ₹3.38 lakh crore have been issued.

Q5: What is the percentage growth in net direct tax collections?
(a) 15%
(b) 16%
(c) 20%
(d) 19%

View Answer  

Ans: (b)
Sol: Net direct tax collections have experienced a growth of over 16%.