Direct Tax Dip Amid Surging Refunds

Net direct tax collections fell by 1.34% to Rs 5.63 lakh crore due to increased refunds. Corporate tax collections were Rs 2 lakh crore, and non-corporate tax Rs 3.45 lakh crore. The securities transaction tax contributed Rs 17,874 crore. Gross collections grew by 3.17% to Rs 6.65 lakh crore.

The net direct tax collection decreased by 1.34 percent to roughly Rs 5.63 lakh crore as of July 10 in the current fiscal year, primarily due to higher refunds, government data revealed on Friday.

The net corporate tax collection was approximately Rs 2 lakh crore, while the non-corporate tax, covering individual taxpayers, Hindu Undivided Families (HUFs), and firms, reached Rs 3.45 lakh crore. The securities transaction tax generated Rs 17,874 crore from April 1 to July 10.

Total net tax collections were Rs 5.63 lakh crore, marking a decline of 1.34 percent from Rs 5.70 lakh crore recorded in the same period last year. Meanwhile, the net refunds issued this fiscal year surged by 38 percent to Rs 1.02 lakh crore. Gross collections, prior to refunds, increased by 3.17 percent to Rs 6.65 lakh crore from April 1 to July 10, compared to Rs 6.44 lakh crore in the prior year. The government has projected a 12.7 percent year-on-year increase in direct tax collections, targeting Rs 25.20 lakh crore for the current fiscal. Additionally, the government plans to achieve Rs 78,000 crore in STT by FY26.

(With inputs from agencies.)