Direct Tax Collections Surge Amid Refund Slowdown

Net direct tax collection in India rose by 8% to over Rs 17.04 lakh crore from April 1 to December 17 as refund issuances slowed. The gross direct tax collections saw a growth of 4.16% to Rs 20.01 lakh crore. Corporate tax and non-corporate tax collections contributed significantly.

The Indian direct tax scenario witnessed a notable 8% increase, with collections surpassing Rs 17.04 lakh crore between April 1 and December 17, according to recent data from the income tax department. This growth comes amidst a marked slowdown in refund issuances.

Breaking down the figures, corporate tax collection achieved Rs 8.17 lakh crore, while non-corporate tax accounted for approximately Rs 8.47 lakh crore. Meanwhile, revenue from the Securities Transaction Tax (STT) stood at Rs 40,195 crore for the period.

The total gross direct tax collections, prior to refund adjustments, recorded a 4.16% increase, reaching over Rs 20.01 lakh crore. Projections for the ongoing fiscal year 2025-26 set the direct tax collection target at Rs 25.20 lakh crore, reflecting a 12.7% year-on-year growth. The government expects to gather Rs 78,000 crore from STT in FY26.

(With inputs from agencies.)