Have Gross Direct Tax Collections Increased by 4.9% to Rs 5.45 Lakh Crore While Refunds Surge by 58%?
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Synopsis
Discover the latest figures from India's Income Tax department showing a 4.86% rise in gross direct tax collections to Rs 5.45 lakh crore. While refunds soar by 58%, net collections dip, prompting a closer look at fiscal trends and tax reforms.
Key Takeaways
- Gross direct tax collection increased by 4.86% to Rs 5.45 lakh crore.
- Net collections fell 1.39% to Rs 4,58,822 crore.
- Refunds rose by 58.04% to Rs 86,385 crore.
- Corporate tax grew by 5.68%.
- New 'e-Pay Tax' feature aims to streamline tax processes.
New Delhi, June 21 (NationPress) The total gross direct tax revenue (including corporate tax, non-corporate tax, securities transaction tax, and other charges) for the fiscal year 2025-26 has increased by 4.86%, reaching Rs 5.45 lakh crore as of June 19, based on the latest data from the Income Tax (I-T) department.
Nevertheless, net collections experienced a slight dip due to an increase in refunds. The net direct tax collection fell by 1.39% to Rs 4,58,822 crore from Rs 4,65,275 crore reported the previous year.
The government has issued direct tax refunds totaling Rs 86,385 crore by June 19, reflecting a rise of 58.04% compared to the same period in 2024-25, according to official statistics.
The Central Board of Direct Taxes (CBDT) indicates that net direct tax revenue includes corporate tax at Rs 1.72 lakh crore (post-refund), non-corporate tax at Rs 2.72 lakh crore, and securities transaction tax at Rs 13,013 crore (after refunds).
While non-corporate tax collection declined by 2.68% in advance tax, corporate tax recorded a growth of 5.68%. Overall, advance tax collections rose by 3.87% to Rs 1,55,533 crore.
Direct taxes, levied on an individual’s income or profit, are directly remitted to the government.
The I-T department has recently introduced the 'e-Pay Tax' feature, designed to streamline tax-related processes for taxpayers. The Union Budget has also proposed a significant overhaul of the Income-tax Act, 1961, aimed at enhancing transparency.
In the meantime, India's gross Goods and Services Tax (GST) revenue for May 2025 hit Rs 2.01 lakh crore, representing a 16.4% increase compared to the Rs 1.72 lakh crore collected in May 2024.
This marks the second consecutive month that GST revenues have surpassed the Rs 2 lakh crore threshold, indicating robust economic activity and consistent growth in consumption. In April, GST collections peaked at an all-time high of Rs 2.37 lakh crore, a 13% rise from March, according to data from the Ministry of Finance.
Point of View
It is crucial to recognize that while gross direct tax collections reveal positive growth, the increase in refunds highlights challenges within our tax system. The government's ongoing reforms, including the proposed overhaul of the Income-tax Act, aim to enhance transparency and efficiency. Staying informed about these developments is essential for fostering a robust economic environment.
NationPress
21/06/2025
Frequently Asked Questions
What is the gross direct tax collection for the fiscal year 2025-26?
The gross direct tax collection for the fiscal year 2025-26 has reached Rs 5.45 lakh crore, reflecting an increase of 4.86% compared to the previous year.
How much have direct tax refunds increased?
Direct tax refunds have surged by 58.04%, amounting to Rs 86,385 crore till June 19, compared to the same period last year.
What does net direct tax collection include?
Net direct tax collection includes corporate tax, non-corporate tax, and securities transaction tax, totaling Rs 4,58,822 crore after accounting for refunds.
What initiatives has the I-T department introduced recently?
The I-T department has launched the 'e-Pay Tax' feature aimed at simplifying tax-related procedures for taxpayers.
How has the GST collection performed?
India's gross GST revenue for May 2025 reached Rs 2.01 lakh crore, marking a 16.4% increase compared to May 2024.
