At the start of fiscal year 2025-26, the central government faced a slight decline in direct tax collection. According to figures from April 1st to July 10th, 2025, the country's net direct tax collection decreased by 1.34 percent, reaching approximately ₹5.63 lakh crore. In the same period last year, the figure was around ₹5.70 lakh crore.
Increased Refunds Lead to Reduced Tax Collection
According to the government, the primary reason for this decline in tax collection is a significant increase in refunds. During this period, a total of ₹1.02 lakh crore in tax refunds were issued, which is 38 percent higher than last year. This faster pace of refunds indicates the government's focus on providing timely services to taxpayers.
Clear Difference Between Net and Gross Figures
However, considering the gross collection, the total tax revenue saw an increase. From April 1st to July 10th of this year, gross direct tax collection reached ₹6.65 lakh crore, compared to ₹6.44 lakh crore in the same period last year. This represents a 3.17 percent growth in gross collection.
Decline in Company Tax, Personal Tax Stable
Looking at net collection, the revenue from company tax amounted to ₹2 lakh crore, which is 3.67 percent less than the ₹2.07 lakh crore collected last year. On the other hand, non-company tax, including personal income tax, HUF (Hindu Undivided Family), and firms, yielded a collection of ₹3.45 lakh crore, which, though slightly, remained almost stable compared to the previous year.
Security Transaction Tax also Raised ₹17874 Crore
During this period, Security Transaction Tax (STT) generated ₹17874 crore. The government aims to collect a total of ₹78000 crore from STT throughout the year. Thus, the collection in the initial three months can be considered as per expectations.
Government Achieved 22.34 Percent of its Target
The government has set a target of ₹25.20 lakh crore for direct tax collection in the current fiscal year. As of July 10th, the government has collected 22.34 percent of this target. While the pace of net collection has slowed down due to tax refunds, the gross collection continues to improve.
Comparison of Company and Non-Company Taxes
In terms of gross collection, company tax this time was ₹2.90 lakh crore, indicating a growth of 9.42 percent. Conversely, non-company tax in gross figures stood at ₹3.57 lakh crore, showing a slight decrease of 1.28 percent. This clarifies that companies have performed better in terms of tax contribution.
Possibility of Expansion in the Number of Taxpayers
Government sources believe that the number of taxpayers may increase in the coming months, which is expected to lead to improvements in tax collection going forward. The target for this year is set 12.7 percent higher than the previous year, requiring rapid tax collection throughout the year.
