Direct Tax Collection Dips Amid Higher Refunds Impact

In the latest fiscal data release, India's net direct tax collection saw a decrease of 3.95%, totaling Rs 6.64 lakh crore. This downturn is chiefly due to an increase in tax refunds, as shared by the government on Tuesday.

Corporate tax contributions amounted to approximately Rs 2.29 lakh crore, while revenue from non-corporate taxes, encompassing individuals, Hindu Undivided Families, and firms, reached Rs 4.12 lakh crore. The collection from the Securities Transaction Tax (STT) stood at Rs 22,362 crore between April 1 and August 11.

Refunds have surged by 10% this fiscal, hitting Rs 1.35 lakh crore. Despite the dip in net collections compared to last fiscal, the government is optimistic, projecting direct tax revenue to climb to Rs 25.20 lakh crore in 2025-26, marking a 12.7% growth.

(With inputs from agencies.)