India’s net direct tax collection declined by 1.34% year-on-year to Rs 5.63 lakh crore as of July 10, the Income Tax Department said on Friday. The drop is primarily attributed to a sharp surge in tax refunds issued during the period.
According to the latest data, net collections stood at Rs 5,62,827 crore, compared to Rs 5,70,483 crore in the same period last year. Tax refunds saw a significant 38.01% rise, reaching Rs 1,01,980 crore; a key factor contributing to the decline in net revenue.
Net corporate tax collection stood around Rs 2 lakh crore, while non-corporate tax (which includes individuals, HUFs and firms) was at Rs 3.45 lakh crore. Securities transaction tax mop-up was Rs 17,874 crore between April 1 and July 10.
Total net collections stood at Rs 5.63 lakh crore, registering a decline of 1.34 per cent over Rs 5.70 lakh crore collected in the year-ago period.
Net refunds issued so far this fiscal year jumped 38 per cent to Rs 1.02 lakh crore.
Gross collections (before refunds) stood at Rs 6.65 lakh crore from April 1-July 10, posting a 3.17 per cent growth over Rs 6.44 lakh crore in the year-ago period.
In the current fiscal year, the government has projected its direct tax collections at Rs 25.20 lakh crore, up 12.7 per cent year-on-year. The government aims to collect Rs 78,000 crore from STT in FY26.
(With inputs from PTI)