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India’s Direct Tax-to-GDP Ratio Hits 15-Year High in FY25.

Economy & Business | Dated: 08 Jan 2026

The Central Board of Direct Taxes (CBDT) released data showing that India’s Direct Tax-to-GDP ratio reached a 15-year high of 6.11% in the Financial Year 2024-25. The growth reflects improved tax compliance, the widening of the tax base, and the adoption of technology in tax administration.

🎯 Key Highlights:

  • The cost of tax collection has decreased to 0.51%, indicating efficiency.
  • Net Direct Tax collections witnessed a growth of 160% over the last decade.
  • Personal Income Tax (PIT) contributions have surpassed Corporate Tax collections.

💡 Other Important Facts:

  • Metric: Direct Tax-to-GDP Ratio.
  • Value: 6.11%.
  • Trend: 15-year high.

📚 Test Your Knowledge:

What was India's Direct Tax-to-GDP ratio in FY 2024-25, marking a 15-year high?

Correct Answer: 6.11%

🚀 Quick Recap:

About CBDT

  • Chairman – Ravi Agrawal
  • Parent Ministry – Finance