New Delhi: Net direct tax collection dipped 3.95 per cent to Rs 6.64 lakh crore so far this fiscal, mainly on account of higher refunds, according to government data released on Tuesday.
Direct tax includes taxes on income paid by companies, individuals, professionals, and other entities.
As per the data released by the Central Board of Direct Taxes (CBDT), refunds issued so far this fiscal jumped 10 per cent to Rs 1.35 lakh crore between April 1 and August 11.
Net corporate tax collection rose 3 per cent to about Rs 2.29 lakh crore, while non-corporate tax (which includes individuals, Hindu Undivided Families (HUFs) and firms) mop up dipped 7.45 per cent to Rs 4.12 lakh crore.
Securities Transaction Tax (STT) mop-up was Rs 22,362 crore between April 1 and August 11.
Total net collections stood at about Rs 6.64 lakh crore, a 3.95 per cent fall over Rs 6.91 lakh crore collected in the same period last fiscal (2024-25).
Gross collections (before refunds) stood at Rs 7.99 lakh crore between April 1-August 11, a 1.87 per cent dip over Rs 8.14 lakh crore in the year-ago period.
Price Waterhouse & Co LLP Partner Hitesh Sawhney said the decline in the net collections is mainly due to the higher volume of refunds issued, especially for the corporate tax.
ICRA Chief Economist Aditi Nayar said the direct tax collections seem to have been dampened by high refunds of corporation tax collections and a later deadline for personal income tax return filings.
“The available data on tax collections suggests that the GoI’s personal income tax and corporation tax collections are required to record a high double-digit growth in the remaining part of FY2026, to meet their respective FY2026 targets. While this may seem challenging, the growth rates in net PIT and CT collections are likely to improve as the year progresses and the base normalises,” Nayar said.
In the current fiscal (2025-26), the government has projected its direct tax collection at Rs 25.20 lakh crore, up 12.7 per cent year-on-year. The government aims to collect Rs 78,000 crore from STT in FY26.
