Government's Tax Collections Show Sluggish Growth This Fiscal Year

The net direct tax collection for this fiscal year stands at Rs 4.59 lakh crore, slightly lower than last year. While corporate tax collections decreased, non-corporate taxes saw minimal growth. Advance tax collection growth has slowed, and gross tax collections increased by 4.86 per cent.

This fiscal year's net direct tax collection amounts to Rs 4.59 lakh crore, showing a 1.39 per cent decline from the corresponding period last year, according to government data released on Sunday. A slowdown in advance tax collections has contributed to this decline.

From April 1 to June 19, 2025, advance tax collections grew a mere 3.87 per cent to Rs 1.56 lakh crore, significantly lower compared to the 27 per cent growth recorded in the same period in 2024. Corporate tax collection experienced a slowdown, declining by over 5 per cent year-on-year to about Rs 1.73 lakh crore.

In contrast, non-corporate tax collections showed slight improvement, rising 0.7 per cent to Rs 2.73 lakh crore. The Securities Transaction Tax (STT) also increased by 12 per cent to Rs 13,013 crore during this time. Gross direct tax collection increased by 4.86 per cent to Rs 5.45 lakh crore, while refunds issued surged by 58 per cent to Rs 86,385 crore.

(With inputs from agencies.)