The increase in net direct tax receipts in India can be attributed to various factors:

• Efforts by the government to widen the tax base and crack down on tax evasion through initiatives such as demonetization and the Goods and Services Tax (GST) implementation.
• Steady economic growth, which has led to higher profits for businesses and increased individual incomes, resulting in greater tax revenue.
• Introduction of new tax reforms such as the Direct Tax Code in 2019 to simplify and streamline the taxation process and reduce litigation.
• Implementation of a faceless assessment and appeals scheme to remove any bias in the tax assessment process and ensure transparency.

While there are some concerns about the economic impact of the COVID-19 pandemic on tax revenue, it is expected that the growth in net direct tax receipts will continue in the coming years, as the government continues to focus on increasing compliance and enhancing revenue collection measures. Additionally, structural reforms in the taxation system and the economy as a whole are expected to contribute to sustained growth in revenue.