India's net direct tax collection for the financial year 2025-26 stood at Rs 4.59 lakh crore as of June 19, 2025, marking a marginal decline of 1.39% compared to Rs 4.65 lakh crore collected during the same period last year, according to official data released by the Income Tax Department.
While gross collections surged by 4.86%, reaching Rs 5.45 lakh crore, a significant rise in refunds-up by 58.04%-brought down the net collections.
Key Highlights
- Gross Collection rose to Rs 5.45 lakh crore from Rs 5.19 lakh crore in the previous year.
- Net Collection stood at Rs 4.58 lakh crore, down from Rs 4.65 lakh crore YoY.
- Refunds issued during this period surged to Rs 86,385 crore from Rs 54,661 crore, reflecting improved taxpayer services and faster processing.
Segment-Wise Collection
- Corporate Tax (CT) net collection rose to Rs 1.73 lakh crore from Rs 1.82 lakh crore last year, showing a slight decline.
- Non-Corporate Tax (NCT) net collection dropped marginally to Rs 2.73 lakh crore.
- Securities Transaction Tax (STT) saw a dip to Rs 13,013 crore from Rs 11,605 crore.
Advance Tax Trends
Advance tax collections showed positive momentum, growing by 3.87% overall:
- Corporate Advance Tax increased by 5.86% to Rs 1.22 lakh crore.
- Non-Corporate Advance Tax declined by 2.68% to Rs 33,928 crore.
The government attributed the improved refund issuance to robust automation, prompt processing through TIN systems, and policy reforms aimed at enhancing taxpayer experience.
Outlook
With economic activity on a steady recovery path and the government's continued push for compliance and digital tax administration, experts expect the shortfall in net collections to be balanced out in the coming quarters. However, refund outflows and global uncertainties may remain key factors influencing fiscal performance.
Official copy of the notification has also been attached
CAclubindia
