Direct tax receipts decline 4%

Subdued Business Confidence

- PRASANTA SAHU

THE CENTRE'S DIRECT tax collections, net of refunds, fell nearly 4% till August 11 of the current financial year, weighed down by the liberal income tax relief unveiled in Budget FY26 and extended time for individuals to file tax returns.

A slower growth in advance tax, reflecting subdued business confidence, also hit the collections.

Latest official data showed that, direct tax collections till date fell by 3.95% on-year to ₹6.64 lakh crore as against the required rate of 13.2% to meet the FY26 target of ₹25.2 lakh crore.

Receipts so far amount to 26.3% of the FY26 target compared with 31.3% of annual target achieved in the year ago period.