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Higher tax refunds signal formalization
Mint Bangalore
|July 14, 2025
Income tax refunds rose 474% since FY14, outpacing the 274% growth in gross direct tax collections
Tax refunds over the last decade have surged faster than growth in gross direct tax revenue collections, a person informed about the development said on Sunday, showing increased formalization of the economy.
Gross direct tax revenue collections have jumped 274% since financial year 2014 (FY14) to ₹27 trillion in FY25. In comparison, income tax refunds shot up at a much faster clip of 474% during this period to ₹4.76 trillion.
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