NEW DELHI: Net direct tax collection in the first quarter (till 19 June 2025) of FY26 has contracted by 1.39% compared to the corresponding period last year. Even the gross tax collections during the period showed a moderate growth.
The provisional figures released by the Central Board of Direct Taxes (CBDT) show that gross direct tax collections in the first quarter stand at Rs 5.45 lakh crore, a 4.86% growth from Rs 5.2 lakh crore in FY 2024-25 (as on June 19, 2024).
Refunds have surged by 58.04%, amounting to Rs 86,385.31 crore during the period, significantly higher than Rs 54,660.79 crore in the previous fiscal year's comparable period.
This increase in refunds is attributed to "better taxpayer services and quicker issuance of refunds," according to CBDT. Consequently, the net direct tax collection for FY 2025-26 stands at Rs 4.59 lakh crore, a decline from Rs 4.65 lakh crore recorded in the previous year.
The drop in net tax collection was largely due to a contraction in net corporate tax collection, which fell by 5.4% to Rs 1.72 lakh crore. Even personal income tax collection – which has largely been driving the direct tax collections in the last few years – showed a flat growth of just 1% to Rs 2.72 lakh crore.
Advance tax collections for FY 2025-26 (till 19 June 2025) also showed a mixed trend. While overall advance tax collections have grown by 3.87% to Rs 1.56 lakh crore, the growth is primarily driven by Corporate Tax, which saw an increase of 5.86% (Rs 1.22 lakh crore). Non-Corporate Tax advance collections, however, registered a contraction of 2.68% to Rs 33,928.32 crore.