Net direct tax collection dips 1.39 pc to Rs 4.59 lakh cr on lower advance tax mop-up higher refunds

Net direct tax collection so far this fiscal year dropped 1.39 per cent to Rs 4.59 lakh crore, on slowdown in advance tax mop-up and higher refunds, government data released on Saturday showed.

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Advance tax, which is an indicator of corporate profitability and income of individuals, grew a meagre 3.87 per cent to Rs 1.56 lakh crore between April 1 and June 19, 2025. In the comparable period in 2024, advance tax collections had recorded an annual growth of 27 per cent.

Advance tax paid by corporates saw a growth of 5.86 per cent to Rs 1.22 lakh crore, while those by non-corporates, including individuals, HUFs and firms, dropped 2.68 per cent to Rs 33,928 crore.

Advance tax is paid in four instalments in June, September, December, and March.

Experts said attributed the slowdown in direct tax mop-up in the first quarter to the personal I-T rate revisions, which took effect from April 1. Higher capex by corporate also lowered tax profit, they said.

Between April 1 and June 19, 2025, refund issuances increased 58 per cent to Rs 86,385 crore.

Gross direct tax collection stood at Rs 5.45 lakh crore so far this fiscal year, logging a growth of 4.86 per cent in the year-ago period.