Net direct tax collection slips 1.3% to Rs 5.6 trillion; refunds surge 38%

The government said it had issued tax refunds worth Rs 1.01 trillion during the period, 38 percent higher than last year.

Net direct tax collection fell 1.34 percent to about Rs 5.63 lakh crore till July 10 of the current financial year, mainly on account on higher refunds, according to government data released on Friday.

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.