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Key Points

India's net direct tax collections dipped 3.95% to ₹6.64 lakh crore due to a 10% rise in refunds. Corporate tax grew 2.9%, while non-corporate tax fell sharply by 7.5%. STT collections rose 3.5%, but other taxes plunged over 80% without last year's one-off receipts. The CBDT noted higher corporate tax and STT revenues partially offset the overall decline.

Key Points: India's Direct Tax Collections Dip 4% as Refunds Rise

  • Corporate tax collections rose 2.9% despite higher refunds
  • Non-corporate tax dropped 7.5% amid slower income growth
  • Securities Transaction Tax (STT) rose 3.5% on strong market activity
  • Gross collections fell 1.87% as one-off tax receipts declined
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Direct tax collections dip 3.95% due to rise in tax refunds

India's net direct tax collections fell 3.95% to ₹6.64 lakh crore amid a 10% surge in refunds, with corporate tax showing modest growth.

"Refunds rose nearly 10% year-on-year to ₹1.35 lakh crore, offsetting gross tax gains. – Income Tax Department"

New Delhi, August 12

India's net direct tax collections for FY 2025-26 stood at Rs 6.64 lakh crore as on August 11, down 3.95 per cent from Rs 6.91 lakh crore collected during the same period last year, Income Tax Department data shows.

The data suggests that a rise in the tax refund was the major reason behind the decline.

Refunds rose nearly 10 per cent year-on-year to Rs 1.35 lakh crore, with corporate refunds climbing 21 per cent to over Rs 1.03 lakh crore, partly offsetting gross gains.

The data shows that the corporate tax collections rose 2.9 per cent to Rs 2.29 lakh crore after refunds, supported possibly by better profitability and tax compliance among large companies.

In contrast, non-corporate tax collections dropped 7.5 per cent to Rs 4.12 lakh crore, indicating slower income growth or deferred payments from smaller businesses and individuals.

Gross direct tax collections before refunds fell 1.87 per cent to Rs 7.99 lakh crore. Corporate tax in this category rose 8 per cent to Rs 3.33 lakh crore, while non-corporate tax fell 8 per cent to Rs 4.43 lakh crore. Securities Transaction Tax (STT) collections grew 3.5 per cent to Rs 22,362 crore, reflecting continued market activity, but "other taxes" plunged over 80 per cent due to the absence of last year's one-off receipts.

India's direct tax collections, in gross terms, have witnessed a robust growth of 3.2 per cent year-on-year so far in 2025-26, reaching Rs 6.64 lakh crore, data released by the Central Board of Direct Taxes (CBDT) showed. In 2024-25 same period, it was Rs 6.44 lakh crore.

This rise in collections is attributed to higher corporate tax revenues and securities transaction tax (STT) receipts. Non corporate tax trails.

- ANI

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Reader Comments

P
Priya S
The rise in corporate tax collections shows big companies are doing well. But common people are facing inflation and job cuts. Government should balance tax burden better. 😕
A
Aditya G
As a CA, I see many clients getting refunds faster this year. The IT department's efficiency has improved, though the numbers look bad temporarily. This is actually good governance!
S
Sarah B
The 80% drop in "other taxes" needs explanation. Such wild fluctuations make budget planning difficult. Transparency in tax data would help citizens understand these changes better.
K
Karthik V
STT growth shows retail investors are active in markets despite volatility. But middle class is bearing the brunt of taxes while corporates get incentives. Not fair!
N
Nisha Z
The 7.5% drop in non-corporate collections is worrying. Many small shopkeepers and professionals had to dip into savings during pandemic. Government should give them more time to recover.

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