India's net direct tax collections have seen negative growth of 1.39 percent at Rs 4.58 lakh crore in the current financial year from Rs 4.65 lakh crore in the year-ago period, the income tax department has said.
The Central Board of Direct Taxes (CBDT) said net direct tax collection of Rs 4.58 lakh crore, until June 19, includes corporate tax at Rs 1.72 lakh crore (net of refund), non-corporate tax at Rs 2.72 lakh crore and securities transaction tax at Rs 13,013 crore (net of refund).
Direct taxes, which are levied on the income or profit of a person, are directly paid by an individual to the government. Common examples of direct taxes are income tax, property tax, corporate tax, wealth tax, gift tax, security transaction tax, and capital gains tax.
The government issued direct tax refunds of Rs 86,385 crore till June 19, an increase of 58.04 percent as compared to the corresponding period of 2024-25.
While the non-corporate tax collection fell 2.68 percent in advance tax, corporate tax grew by 5.68 percent.
Tax collection is significant since it helps the government meet its fiscal deficit target. The Centre set a 4.4 percent fiscal deficit target for FY26 in the July budget.
On a gross basis, before adjusting refunds, the direct tax collection was at Rs 5.45 lakh crore till June 19, a 4.86 percent growth over the year-ago period.
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