India's Income Tax Department reported a notable increase in net direct tax collection for FY 2024-25, reaching Rs 5.74 lakh crore by July 11, 2024, reflecting a 19.54% rise over the previous fiscal year. The gross direct tax collection rose to Rs 6.45 lakh crore, marking a 23.24% increase. Additionally, tax refunds saw a significant surge to Rs 70,902 crore, showcasing efficient processing by the government. Meanwhile, challenges have arisen regarding the Income Tax Department's interpretation affecting tax rebates for specific incomes, leading to calls for resolution and clarification. The ongoing debate over the Constitution's categorization of direct and indirect taxes persists, with historical evidence challenging recent Supreme Court interpretations, bringing clarity to tax distinctions and their implications.