Corporate tax collections have shown a consistent increase since the reduction of corporate tax rates from AY 2020-21, except for the COVID-affected FY 2020-21. Net corporate tax collections rose from ₹5.57 lakh crore in FY 2019-20 to ₹9.11 lakh crore in FY 2023-24, with provisional collections of ₹7.40 lakh crore for FY 2024-25 (up to December 31, 2024). No specific incentives targeting international corporations like Apple and Google are currently planned. However, the Finance Bill 2025 proposes a presumptive taxation regime for non-residents providing services or technology to resident companies engaged in electronics manufacturing, resulting in an effective tax rate of under 10% on gross receipts. Additionally, the 2025-26 Budget Speech includes a safe harbour provision for tax certainty for non-residents storing components for electronics manufacturing. These initiatives aim to bolster India’s electronics manufacturing sector.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
RAJYA SABHA
UN-STARRED QUESTION NO. 860
ANSWERED ON – 11/02/2025
CORPORATE TAX COLLECTION
860. Smt. Darshana Singh:
Shri Kesridevsinh Jhala:
Dr. Anil Sukhdeorao Bonde:
Smt. Rekha Sharma:
Dr. Sumer Singh Solanki:
Ms. Kavita Patidar:
Smt. Sangeeta Yadav:
Shri Mithlesh Kumar:
Shri Narayana Koragappa:
Shri Madan Rathore:
Dr. Medha Vishram Kulkarni:
Will the Minister of FINANCE be pleased to state:
(a) whether there has been an overall increase in tax collections with the reduction in corporate tax rates;
(b) if so, the details thereof; and
(c) the incentives proposed to be introduced to attract more international corporations, like Apple and Google to establish operations in India and how these incentives would impact tax revenue?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (b) Yes.
There has been an overall increase in corporate tax collections after reduction of the corporate tax rates with effect from AY 2020-21 (except in FY 2020-21 being covid affected year). The year-wise details of the net corporate tax collection in the last five years are as under:
(Rs. In Crore)
| Financial Year | Net Corporate Tax Collection |
| 2019-20 | 5,56,876 |
| 2020-21 | 4,57,719# |
| 2021-22 | 7,12,037 |
| 2022-23 | 8,25,834 |
| 2023-24 | 9,11,055 |
| 2024-25 (up to 31.12.2024) | 7,39,994* |
Source: Pr. CCA (CBDT)
#Covid affected Year
*Provisional
(c) At present, no specific incentives with respect to income-tax are being considered to attract international corporations, like Apple and Google to establish operations in India.
However, Finance Bill, 2025 proposed to provide a presumptive taxation regime for any nonresident who provides service or technology to a resident company that is establishing or operating an electronics manufacturing facility which satisfies certain conditions. This will result in an effective tax rate of less than 10 per cent on gross receipts by a non-resident company.
Further, it is proposed in the Budget Speech 2025-26 to introduce a safe harbour for tax certainty for non-residents who store components for supply to specified electronics manufacturing units. The above initiatives are aimed at promoting electronics manufacturing industry in the country.
