Direct tax collections have seen a dip in the current fiscal year, primarily due to a significant increase in tax refunds. Here’s a breakdown of the key figures as of August 11:
Direct Tax Collections in Review
- Net collections stood at ₹6.64 lakh crore, a 3.95% decline from the ₹6.91 lakh crore collected during the same period in the previous fiscal year (2024-25).
- Higher refunds are cited as the main reason for the drop. Refunds issued so far this fiscal year have jumped 10% to ₹1.35 lakh crore.
- Gross collections (before accounting for refunds) also saw a slight decrease, falling 1.87% to ₹7.99 lakh crore from ₹8.14 lakh crore a year earlier.
Collection Breakdown
The total collections were split between:
- Corporate taxes: Approximately ₹2.29 lakh crore.
- Non-corporate taxes (from individuals and other entities): ₹4.12 lakh crore.
- Securities Transaction Tax (STT): ₹22,362 crore.
Looking Ahead: Government Projections
Despite the current decline, the government has set ambitious targets for the full fiscal year (2025-26):
- Overall direct tax collections are projected to increase by 12.7% to ₹25.20 lakh crore.
- The target for STT collections is ₹78,000 crore.