Personal Income Tax Emerges as Largest Revenue Source for Govt, Surpassing Corporate Tax and GST

Personal income tax has emerged as the largest revenue source for the Indian government, surpassing corporate tax and GST. This shift is attributed to the robust growth in personal income tax collections, which have outpaced the slower, more volatile growth of corporate tax. Despite challenges like low private consumption and declining inflation, effective tax administration has led to higher revenue. The government anticipates continued tax buoyancy, supported by strong GDP growth and a stable indirect tax structure, with a strategic focus on capital expenditure and fiscal prudence.