From tax collection to inflation front, the government has received 3 Diwali gifts in 24 hours.
Before Diwali, the government and the economy of the country are continuously getting good news. The special thing is that the government has received 3 Diwali gifts in less than 24 hours. First of all, if we talk about fresh gifts, wholesale inflation in the country has come down significantly. Which has seen a decrease of about one and a half percent compared to last month. Before that, retail inflation figures were revealed on October 13. Which was seen at the lower level of 8 years. While giving information late on Monday evening, Income Tax Department had said that there has been an increase of about 7 percent in direct tax collection. In such a situation, the government has received 3 Diwali gifts in less than 24 hours. Which is also a very good sign for the economy. Let us also give you detailed information about these three gifts…
Reduction in wholesale inflation
Wholesale inflation declined to 0.13 percent in September amid softening of prices of food products, fuses and manufactured products. According to government data released on Tuesday, Holsen Price Index (WPI) based inflation was 0.52 percent in August last year and 1.91 percent in September. According to the data, prices of food items decreased by 5.22 percent in September whereas in August this figure was 3.06 percent. A decline was also seen in the prices of vegetables. The prices of vegetables decreased by 24.41 percent in September whereas in August it decreased by 14.18 percent. In case of manufactured products, inflation came down to 2.33 percent as compared to 2.55 percent in August. Fuel and electricity prices declined by 2.58 percent in September whereas they had declined by 3.17 percent in the previous month.
There was also a decline in retail inflation
Retail inflation figures were revealed a day ago. Retail inflation declined to 1.54 percent in September, which was 2.07 percent last month. According to government data released on Monday, this decrease was due to softening of prices of food items including vegetables and pulses. Inflation based on Consumer Price Index (CPI) was 5.49 percent in September 2024. Core inflation and food inflation declined during September 2025 due to favorable base effect as well as decline in prices of vegetables, oils and fats, fruits, pulses, cereals, eggs, fuel and light, NSO said in the statement. Food inflation stood at minus 2.28 percent on an annual basis during September 2025, while it was minus 0.64 percent in August and 9.24 percent in September last year.
Increase in government treasury
On the other hand, there has been an increase in the government treasury due to tax collection. According to government data, due to increase in corporate tax collection and decrease in refunds, net direct tax collection increased by 6.33 percent to more than Rs 11.89 lakh crore till October 12 in the current financial year. The refunds issued between April 1 and October 12 this year declined by 16 percent to Rs 2.03 lakh crore. The net corporate tax collection between April 1 and October 12 was approximately Rs 5.02 lakh crore, which was Rs 4.92 lakh crore in the same period of 2024. During the same period, non-corporate tax was approximately Rs 6.56 lakh crore, which was Rs 5.94 lakh crore in the same period last year.
Securities Transaction Tax (STT) collection stood at Rs 30,878 crore, which was Rs 30,630 crore in the same period a year ago. Net direct tax collection, which includes personal income tax and corporate tax, increased by 6.33 per cent year-on-year to more than Rs 11.89 lakh crore in the current financial year till October 12. In the same period a year ago, it was approximately Rs 11.18 lakh crore. In the current financial year till October 12, the gross direct tax collection before adjusting refunds stood at more than Rs 13.92 lakh crore. This shows an increase of 2.36 percent on an annual basis. The government has set a target of raising Rs 25.20 lakh crore as direct tax collection in the current financial year (2025-26), which is 12.7 percent more on an annual basis.