Net direct tax collection slips 1.4%

The decline was driven by a 58% jump in refunds to ₹86,385.31 cr during April-June 19, compared with ₹54,660.79 cr in the same period last year

- Rajeev Jayaswal

NEW DELHI: India's net direct tax revenue fell 1.4% to ₹4.59 lakh crore in the first quarter of 2025-26 (till June 19) despite gross collections growing little less than 5% to over ₹25.45 lakh crore, government data released on Saturday showed.

The decline was driven by a sharp 58% jump in refunds to ₹86,385.31 crore during April-June 19, compared with ₹54,660.79 crore in the same period last year, primarily due to higher corporate refunds.

"Refunds have increased by 58.04% compared to the corresponding period of last year, reflecting better taxpayer services and quicker issuance of refunds," the Central Board of Direct Taxes said.

Tax experts attributed the dip in net collections to transitional factors, including revised tax slabs and increased business investments rather than any structural weakness.