Direct tax refunds down 17%

AMID A DIP in tax collections relative to the Budget Estimates, refunds of direct taxes have slowed.

- KULDEEP SINGH

According to data from the Central Board of Direct Taxes (CBDT), the government issued direct tax refunds of $3.11 lakh crore as of January 11 in the current financial year, compared with $3.75 lakh crore during the corresponding period last year, marking a year-on-year contraction of 16.92%.

The decline in refunds was particularly sharp in the non-corporate segment, which fell 25% to $1.71 lakh crore, while corporate tax refunds declined 10% to $1.83 lakh crore as of January 11 in FY26.