India's direct tax buoyancy has remained above 1 for the third consecutive financial year, standing at 1.39 in 2024-25. The ratio was 1.27 in 2022-23 and 1.48 in 2023-24. Tax buoyancy measures how fast direct tax revenue grows relative to nominal GDP; a value above 1 means tax collections are outpacing the economy. Direct taxes such as income tax, corporate tax and securities transaction tax are administered by the Central Board of Direct Taxes (CBDT). The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026.