Direct tax mop-up rises 8%, tax relief tempers growth

Collections grow at slower than projected 13%; non-tax revenue robust on RBI dividend

- Gireesh Chandra Prasad

Disinflation also affected tax revenue buoyancy. In the three months to November, CPI-based inflation was below RBI's target range of 2-6%.

(ISTOCKPHOTO)

The Centre’s direct tax revenue collection, after adjusting for refunds, stood at ₹17 trillion in the April to mid-December period, rising 8% year-on-year, official data showed.

The growth was slower than the projected 13% increase, as tax relief granted to individuals moderated revenue growth from personal income taxes. Data released by the Central Board of Direct Taxes (CBDT) on Friday showed that tax receipts from corporations and individuals between 1 April and 17 December accounted for two-thirds of the full-year target of ₹25.2 trillion.

Companies paid over ₹8.17 trillion during the period after adjusting for refunds, registering a 10.5% increase year-on-year, in line with the growth rate projected in the Union budget for FY26, presented on 1 February.

Individuals have paid about ₹8.47 trillion so far this financial year after adjusting for refunds, marking a 6.4% growth. However, this is slower than the 14.4% growth projected for net personal income tax receipts this year.