Personal Income Tax Renamed as Non-Corporate Tax, Govt collects Rs. 22,21,928 crore Tax
The Government of India has decided to change the name of Personal Income Tax to Non-Corporate Tax (NCT) starting from Financial Year 2025-26. The change has been made because tax collections from several categories other than companies are grouped under this category.
Non-Corporate Tax includes taxes paid by individuals, Hindu Undivided Families (HUFs), firms, Associations of Persons (AoPs), Bodies of Individuals (BoIs), local authorities, and artificial juridical persons. It also includes collections from Securities Transaction Tax (STT).
💡 Did You Know? Income Tax Facts
- Income Tax was first introduced in India in 1860 by the British government.
- India follows a progressive tax system, meaning higher income individuals pay higher tax rates.
- The government collects Income Tax mainly from individuals, firms, HUFs, and other non-corporate entities.
- Income Tax is one of the largest sources of revenue for the Government of India.
- In recent years, digital tax filing (ITR) has made tax compliance easier for millions of taxpayers.
- From FY 2025-26, Personal Income Tax is renamed as Non-Corporate Tax (NCT) in official government data.
Non-Corporate Tax Collections Higher than Corporate Tax
According to data released by the Income Tax Department, tax collections from non-corporate taxpayers have increased significantly in the last five financial years. In FY 2020-21, the government collected ₹4,87,560 crore as Non-Corporate Tax and ₹4,57,719 crore as Corporate Tax. During that year, tax collections declined slightly due to the economic impact of the COVID-19 pandemic.
However, collections increased strongly in the following years. In FY 2021-22, Non-Corporate Tax collections rose to ₹6,96,604 crore, showing a growth of 42.88%, while Corporate Tax collections reached ₹7,12,037 crore, growing by 55.56%.
Strong Growth in Recent Years
The growth trend continued in the following years.
- In FY 2022-23, Non-Corporate Tax collections increased to ₹8,33,307 crore, while Corporate Tax collections stood at ₹8,25,834 crore.
- In FY 2023-24, Non-Corporate Tax collections rose further to ₹10,44,726 crore, compared to ₹9,11,055 crore for Corporate Tax.
Latest Data for FY 2024-25
In FY 2024-25, Non-Corporate Tax collections reached ₹12,35,161 crore, registering an annual growth of 18.23%. Corporate Tax collections also increased to ₹9,86,767 crore, with a growth rate of 8.31%.
Tax Collection by Govt (Amt in Rs.cr)
| Financial Year | Non-Corporate Tax | Corporate Tax | Non-Corporate Tax Growth (%) | Corporate Tax Growth (%) |
|---|---|---|---|---|
| 2020-21 | 4,87,560 | 4,57,719 | -1.05% | -17.81% |
| 2021-22 | 6,96,604 | 7,12,037 | 42.88% | 55.56% |
| 2022-23 | 8,33,307 | 8,25,834 | 19.62% | 15.98% |
| 2023-24 | 10,44,726 | 9,11,055 | 25.37% | 10.32% |
| 2024-25 | 12,35,161 | 9,86,767 | 18.23% | 8.31% |
Government Focus on Expanding Tax Base
The steady rise in tax collections reflects strong economic activity, improved tax compliance, and expansion of the taxpayer base. With the renaming of Personal Income Tax to Non-Corporate Tax, the government aims to better represent the wide range of taxpayers included in this category. Overall, the latest data shows that tax revenue from individuals and other non-corporate entities has become an important source of government income in recent years.
