New Delhi, July 13 -- Tax refunds over the last decade have surged faster than growth in gross direct tax revenue collections, a person informed about the development said on Sunday, showing increased formalization of the economy.

Gross direct tax revenue collections have jumped 274% since fiscal year 2014 (FY14) to Rs.27 trillion in FY25. In comparison, tax refunds shot up at a much faster clip of474% during this period to Rs.4.76 trillion.

In addition, the increase in the number of tax returns filed, an indicator of widening tax base, was 133% during this period, said the person quoted above, who spoke on condition of not being named.

"Growth in refunds as a proportion of gross tax collected is a reflection of increased formalization...