Net direct tax collections grew 6.33% to Rs 11.89 lakh crore so far in AY 2025-26 as against Rs 11.18 lakh crore in the same period a year ago, mainly due to a sharp dip in income tax refunds, according to the latest data released by the Central Board of Direct Taxes (CBDT).
Total direct tax refunds issued by the government as on October 12, 2025 stood at Rs 2.03 lakh crore in AY 2025-26. In the corresponding period a year ago, the tax department had issued tax refunds to the tune of Rs 2.41 lakh crore, data showed. The tax department has been using data analytics, artificial intelligence and various other measures to combat false tax refund claims.
Corporate tax refunds rise over 16% year-on-year
Interestingly, corporate tax refunds jumped over 16% year-on-year to Rs 1.40 lakh crore from Rs 1.20 lakh crore. However, non-corporate tax or personal income tax refunds saw a massive 48% drop to Rs 62,359 crore from Rs 1.21 lakh crore a year ago.
On this fall in refunds, Rohinton Sidhwa, Partner, Deloitte India, said, “Refunds appear to have dipped based on better algorithms imposed at the time of processing of returns. This raises an interesting point as to what the changes are and what impact they’re going to have on taxpayers.”
Net collection from corporate tax saw a marginal 2% rise at Rs 5.02 lakh crore from Rs 4.92 lakh crore a year ago.
Net collection from non-corporate tax up 10%
Non-corporate tax collection on a net basis witnessed over 10% growth at Rs 6.56 lakh crore in AY 2025-26 against Rs 5.93 lakh crore in the corresponding period a year ago.
Net collection from Securities Transaction Tax rose marginally to Rs 30,878 crore against Rs 30,629 crore a year ago.
Gross direct tax collection up 2.36%
As regards gross direct tax collection, there is a slight uptick. Gross tax collection grew 2.36% to Rs 13.92 lakh crore this year from 13.60 lakh crore in the corresponding period (April 1 to October 12) a year ago.
Gross corporate tax collection saw a 5% rise to Rs 6.42 lakh crore from Rs 6.12 lakh crore in the corresponding months a year ago.
Likewise, the non-corporate tax contribution to gross direct tax collection this year saw a marginal rise of 0.6% at Rs 7.18 lakh crore, compared with Rs 7.14 lakh crore a year ago.
Over 1.43 crore ITRs yet to be processed as on October 12
In AY 2025-26, around 7.75 crore income tax returns (ITRs) have been filed so far, of which about 7.38 crore returns have been verified. When it comes to processing, the income tax department has so far processed around 6.32 crore returns. So over 1.43 crore returns are yet to be processed the department as on October 12, 2025, according to the latest data posted on the Income Tax Department’ official website.
As part of efforts to check tax evasion and fraudulent claims, the Income Tax Department in July launched a massive crackdown on tax professionals and related intermediaries found involved in helping taxpayers claim fake tax deductions and exemptions. Income tax authorities conducted raids on multiple locations across the country related to income tax return (ITR) preparers and entities.