New Delhi, Aug. 27 -- Personal income tax collections have surpassed corporate taxes for the first time in India's history, signalling a structural shift in the country's direct tax architecture driven by formalisation, digitisation and stronger compliance, according to a report by JM Financial Institutional Securities.

The share of personal income tax in total direct taxes rose sharply from 38.1 per cent in FY14 to 53.4 per cent in FY24, while corporate taxes declined from 61.9 per cent to 46.6 per cent over the same period.

India's direct tax compliance has seen major changes over the past decade. The number of individual income tax return filers surged 2.3 times, from 30.5 million in FY14 to 69.7 million in FY23. When including those...