Gross direct tax collections up 4.9 pc at Rs 5.45 lakh crore, refunds rise 58 pc

IANS June 21, 2025 258 views

India's gross direct tax collections rose 4.9% to Rs 5.45 lakh crore in FY25, though net collections dipped slightly due to higher refunds. Corporate tax showed strong growth at 5.68%, while non-corporate tax declined. GST collections remained robust, crossing Rs 2 lakh crore for the second consecutive month. The government continues to streamline tax processes with new digital initiatives.

"Net direct tax collection saw a marginal decline of 1.39% due to increased refunds" – CBDT Data
New Delhi, June 21: The gross direct tax collection (corporate tax, non-corporate tax, securities transaction tax and other levies) in the current fiscal (2025-26) rose by 4.86 per cent to Rs 5.45 lakh crore (as of June 19), according to the latest figures released by the Income Tax (I-T) department.

Key Points

1

Gross direct tax up 4.9% to Rs 5.45 lakh crore

2

Refunds jump 58% to Rs 86,385 crore

3

Corporate tax grows 5.68%

4

GST collections remain strong at Rs 2.01 lakh crore

However, net collections saw a marginal decline due to a rise in refunds. Net direct tax collection saw a marginal decline of 1.39 per cent to Rs 4,58,822 crore from Rs 4,65,275 crore in the previous year.

The government issued direct tax refunds of Rs 86,385 crore till June 19 — an increase of 58.04 per cent as compared to the corresponding period of 2024-25, as per the official data.

According to the Central Board of Direct Taxes (CBDT), net direct tax collection includes corporate tax at Rs 1.72 lakh crore (net of refund), non-corporate tax at Rs 2.72 lakh crore and securities transaction tax at Rs 13,013 crore (net of refund).

As the non-corporate tax collection fell 2.68 per cent in advance tax, corporate tax grew by 5.68 per cent. Overall advance tax receipts grew by 3.87 per cent to Rs 1,55,533 crore.

Levied on the income or profit of a person, Direct taxes are directly paid by an individual to the government.

The I-T department recently launched the 'e-Pay Tax' feature which aims to simplify tax-related procedures for taxpayers. The Union Budget has proposed a comprehensive overhaul of the Income-tax Act, 1961, to make the Act more transparent.

Meanwhile, India’s gross Goods and Services Tax (GST) collection for May 2025 reached Rs 2.01 lakh crore, marking a 16.4 per cent rise compared to the Rs 1.72 lakh crore collected in May 2024.

This marks the second month in a row that GST revenues have stayed above the Rs 2 lakh crore mark, indicating healthy economic activity and steady consumption growth. In April, GST collections had touched an all-time high of Rs 2.37 lakh crore, which was a 13 per cent jump from March, according to the Ministry of Finance data.

—IANS

Reader Comments

R
Rahul K.
Good to see tax collections growing despite global slowdown. But 58% jump in refunds is concerning - hope this doesn't become a trend. Government should focus on reducing processing time for refunds. The new e-Pay Tax feature is a welcome step though 👍
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Priya M.
As a small business owner, I appreciate the tax reforms but implementation is still patchy. Last year my refund took 8 months! GST collections look strong but compliance burden is heavy for MSMEs. Hope the new Income Tax Act simplification actually helps ground-level taxpayers.
A
Arjun S.
Corporate tax growth at 5.68% shows our industries are doing well. This money should be invested in infrastructure and job creation. But why is non-corporate tax declining? Middle class is bearing the brunt as usual while big companies get all the benefits.
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Sunita T.
GST crossing ₹2 lakh crore for 2 months is fantastic news! Shows our economy is resilient. But government should now focus on reducing GST rates for essential items. Petrol, LPG still too expensive for common people. #ReduceGST
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Vikram J.
Numbers look good on paper but where is this money going? We pay so much tax but roads are bad, hospitals overcrowded. Government should show direct correlation between tax collections and public welfare projects. Transparency needed!
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Neha P.
As a CA, I see many clients struggling with complex tax rules despite digitization. The proposed overhaul of Income Tax Act is much needed! Hope they make it simpler like GST. Also, more awareness programs required for first-time taxpayers in regional languages.

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Tags:
direct tax corporate tax GST CBDT income tax economic growth fiscal policy