Net direct tax revenue shrinks 1.34% to ₹5.63 lakh cr

India’s net direct tax revenue contracted 1.34% to ₹5.63 lakh crore as on July 10 of the current financial year as compared to ₹5.70 lakh crore in the corresponding period of FY25 because of over 38% year-on-year jump in refunds, tax relief to the middle class, and efficiency in refund processing.

- Rajeev Jayaswal

The gross collection in FY26 (April 1-July 10), however, recorded a 3.17% increase at ₹6,64,807 crore as against ₹6,44,375 crore in the same period of FY25, data released on Friday showed. The net revenue contracted because refunds rose to ₹1,01,980 crore in this period of FY26 from ₹73,893 crore in the same period of FY25, registering a 38.01% jump.

The contraction in net direct tax revenue was registered on the back of a moderate 3.3% annualised growth in net Goods and Services Tax collection to ₹1,59,106 crore in June 2025, according to the indirect tax data released on July 1.