Economy News

Direct Tax Buoyancy

September 9 , 2026 16 hrs 0 min 20 0

India’s direct tax buoyancy remained above 1 for the third consecutive financial year, reaching 1.39 in 2024–25.
Direct tax buoyancy compares the growth in direct tax revenue with the growth in nominal Gross Domestic Product (GDP).
The ratio was 1.27 in 2022–23, 1.48 in 2023–24, and 1.39 in 2024–25.
A buoyancy value above 1 means direct tax revenue grew faster than nominal GDP.
Direct taxes include income tax, corporate tax and securities transaction tax, and are administered by the Central Board of Direct Taxes (CBDT).
The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026.