The government data showed a decline of 1.39 per cent in net direct tax collection to Rs 4.59 lakh crore so far (from April to June 19, 2025) this fiscal year (FY26), compared to Rs 4.65 lakh crore collected in the corresponding period a year ago, owed to slowdown in advance tax mop-up and higher refunds. The data showed a modest growth of 3.87 per cent in advance tax, which is an indicator of corporate profitability and income of individuals, to Rs 1.56 lakh crore between April 1 and June 19, 2025. The advance tax collections had recorded an annual growth of 27 per cent in comparable period in 2024. In current fiscal year, the advance tax paid by corporates saw a growth of 5.86 per cent to Rs 1.22 lakh crore, while those by non-corporates, including individuals, HUFs and firms, dropped 2.68 per cent to Rs 33,928 crore.
The refund issuances spiked 58 per cent to Rs 86,385 crore during the period between April 1 and June 19, 2025. During the same period, gross direct tax collection stood at Rs 5.45 lakh crore, marking a growth of 4.86 per cent as compare to last year. Meanwhile, the net corporate tax collection witnessed a slowdown at Rs 1.73 lakh crore, a decline of over 5 per cent year-on-year.
The non-corporate tax collections, which include mainly personal income tax, posted a slight increase of 0.7 per cent to Rs 2.73 lakh crore in the same period. Besides, Securities Transaction Tax (STT) collection has grown 12 per cent to Rs 13,013 crore. In the current fiscal year (2025-26), the government has projected its direct tax collections at Rs 25.20 lakh crore, up 12.7 per cent year-on-year. The government has collected 18.21 per cent of its direct tax target till June 19. The government aims to collect Rs 78,000 crore from STT in FY26.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
Net direct tax collection slips 1.39% to Rs 4.59 lakh crore so far in FY26
