Corporate tax revenue collection varies across states, with Maharashtra, Delhi, and Karnataka contributing significantly. The total gross corporate tax collected in FY 2024-25 (as of February 2025) stands at ₹10.19 lakh crore. As per the 15th Finance Commission’s recommendations, 41% of net shareable central taxes, including corporate tax, is allocated to states based on factors like income distance, population, and tax effort. The funds transferred to states are used for infrastructure, healthcare, education, and welfare programs. To promote corporate investment, the government offers financial incentives, including the Production Linked Incentive (PLI) Scheme, Special Assistance for Capital Investment, and contributions to the India Infrastructure Project Development Fund.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
RAJYA SABHA
UN-STARRED QUESTION NO. 1366
ANSWERED ON 11/03/2025
Collection and sharing of corporate taxes
1366. Smt. Rajani Ashokrao Patil:
Will the Minister of FINANCE be pleased to state:
a. the amount of revenue generated by the Ministry from corporate taxes in each State, and how this revenue is shared with the respective State Governments;
b. how the Ministry is ensuring that the revenue generated from corporate taxes in each State is utilized for the development and welfare of the State’s population; and
c. the details of any financial incentives or support provided by the Ministry to encourage corporate investment and growth in different States?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) The amount of revenue generated from corporate taxes in each State from the financial year 2022-23 onwards is as under:
State-wise gross corporate tax collected
(Rs. in Crores)
| Sl. No. | State / Union Territory | FY 2022-23 | FY 2023-24 | FY 2024-25 (as on 28.02.2025) |
| 1 | Andaman And Nicobar Islands | 37.95 | 35.76 | 35.62 |
| 2 | Andhra Pradesh | 8,226.77 | 7,616.58 | 6,435.97 |
| 3 | Arunachal Pradesh | 113.35 | 59.89 | 48.28 |
| 4 | Assam | 4,755.55 | 4,090.83 | 3,158.31 |
| 5 | Bihar | 2,105.01 | 1,972.31 | 1,842.08 |
| 6 | Chandigarh | 1,616.75 | 1,764.96 | 1,336.67 |
| 7 | Chhattisgarh | 5,667.09 | 10,109.17 | 5,795.38 |
| 8 | Dadra & Nagar Haveli, Daman and Diu | 405.19 | 496.03 | 427.85 |
| 9 | Delhi | 1,34,914.13 | 1,33,160.47 | 1,24,449.74 |
| 10 | Outside India | 11,309.95 | 24,619.13 | 27,456.86 |
| 11 | Goa | 1,413.09 | 1,667.63 | 1,554.96 |
| 12 | Gujarat | 46,177.92 | 50,422.62 | 47,518.5 |
| 13 | Haryana | 33,854.01 | 39,688.74 | 37,969. |
| 14 | Himachal Pradesh | 1,042.59 | 1,019.90 | 823.48 |
| 15 | Jammu and Kashmir | 1,082.70 | 1,113.75 | 1,103.13 |
| 16 | Jharkhand | 3,367.12 | 3,760.06 | 3,367.34 |
| 17 | Karnataka | 1,12,450.17 | 1,15,163.00 | 1,01,915. |
| 18 | Kerala | 10,474.21 | 11,282.63 | 10,056.88 |
| 19 | Ladakh | 0.41 | 0.37 | 1.21 |
| 20 | Lakshadweep | 1.29 | 1.50 | 0.73 |
| 21 | Madhya Pradesh | 8,954.19 | 9,039.07 | 7,984.64 |
| 22 | Maharashtra | 4,11,025.91 | 4,94,970.19 | 4,39,918.79 |
| 23 | Manipur | 91.23 | 94.70 | 59.72 |
| 24 | Meghalaya | 369.87 | 426.11 | 261.92 |
| 25 | Mizoram | 52.56 | 37.18 | 34.08 |
| 26 | Nagaland | 32.68 | 86.70 | 182.94 |
| 27 | Odisha | 13,189.68 | 13,727.19 | 14,626.63 |
| 28 | Puducherry | 288.82 | 291.49 | 224.28 |
| 29 | Punjab | 5,680.23 | 5,337.42 | 4,672.47 |
| 30 | Rajasthan | 15,762.88 | 15,150.57 | 13,438.66 |
| 31 | Sikkim | 178.63 | 207.27 | 179.58 |
| 32 | Tamil Nadu | 59,665.36 | 71,330.26 | 60,821.42 |
| 33 | Telangana | 36,526.87 | 43,573.59 | 43,503.38 |
| 34 | Tripura | 63.84 | 51.61 | 45.12 |
| 35 | Uttarakhand | 14,229.48 | 12,729.78 | 10,572.86 |
| 36 | Uttar Pradesh | 16,982.22 | 16,639.96 | 16,640.42 |
| 37 | West Bengal | 35,443.78 | 38,451.02 | 31,164.48 |
| Gross Collection | 9,97,553.50 | 11,30,189.47 | 10,19,628.36 |
Source: DGIT(Systems)
The interse share of States in the Net Proceeds of shareable taxes of the Union is made as per the recommendations of the Finance Commission in terms of Article 280(3)(a) of the Constitution of India. According to the Fifteenth Finance Commission, states are entitled to 41% of the net proceeds of shareable central taxes, which inter-alia includes corporate tax. The distribution of revenue among the States is based on various criteria such as income distance, per capita income, population, forest and ecology, demographic performance and tax effort.
(b) The Central Government transfers the allocated share of tax revenues to State Governments, which are responsible for its budgeting and expenditure. These funds are utilized for various developmental and welfare initiatives, including infrastructure development, healthcare, education, and social welfare programs implemented by the State Governments.
(c) The financial incentives and support provided by the Ministry to encourage investment and growth in different States, inter alia include:
i. Production Linked Investment (PLI) Scheme for different sectors
ii. Scheme for Special Assistance to States for Capital Investment
iii. Contribution to India Infrastructure Project Development Fund.
