India’s corporate tax collection has surged from Rs 4,57,719 crore in 2020-21 to Rs 9,86,767 crore in 2024-25, the Parliament was informed on Tuesday. Minister of State for Finance Pankaj Chaudhary shared the data in the Rajya Sabha in response to a written question, reported IANS.
According to Chaudhary, the RBI’s October 2025 bulletin article “Resilience and Revival: India’s Private Corporate Sector” noted that during the Covid period, despite contraction in sales, lower raw material costs, subdued wage growth, and favorable base effects, net profit at the aggregate level rose sharply by 115.6 per cent, the report added,
Post-Covid Corporate Profits Rebound Sharply
“Consequently, net profit margin surpassed its pre-Covid level. During post-Covid period, with a sharp rebound in sales growth led by pent-up demand, corporates’ profit increased significantly from Rs. 2.5 lakh crore in 2020-21 to Rs. 7.1 lakh crore during 2024-25,” the minister added, according to IANS.
Chaudhary noted that the corresponding rise in corporate taxes over the same period is more than 200 per cent despite a gradual reduction in corporate rates aimed at boosting growth, investment, and job creation.
Legislative and Administrative Measures Boost Compliance
“Corporate tax rates have been gradually reduced over the years since 2016 to promote growth, boost investment and create more job opportunities,” he said. Key measures include reducing corporate rates from 30 per cent in 2016 to 22 per cent for domestic companies in 2019, and lowering rates for foreign companies from 40 per cent to 35 per cent under the Finance Act, 2024.
The minister also highlighted steps taken to broaden the tax base, including the NUDGE campaigns to assist taxpayers in filing correct ITRs, expansion of TDS and TCS coverage, third-party financial transaction reporting, and the implementation of the non-filers monitoring system.
Additional measures such as linking PAN with Aadhaar, legislation against black money, and promotion of digital transactions have further helped enhance tax compliance and collections, Chaudhary added.