India’s net direct tax collections have witnessed a slight decline in the ongoing financial year, with the total mop-up standing at ₹4.58 lakh crore as of June 19, 2025 — marking a 1.39% fall compared to ₹4.65 lakh crore collected during the same period last year, the Income Tax Department said on Thursday.
According to data released by the Central Board of Direct Taxes (CBDT), the net collections comprise ₹1.72 lakh crore from corporate taxes, ₹2.72 lakh crore from non-corporate taxes, and ₹13,013 crore through Securities Transaction Tax (STT), all net of refunds.
Direct taxes — which include income tax, corporate tax, property tax, capital gains tax, and others — constitute a critical component of the government’s revenue, directly impacting its ability to manage fiscal targets.
One of the key highlights was the significant increase in tax refunds issued this year. The government has disbursed ₹86,385 crore in refunds up to June 19, reflecting a sharp 58.04% jump over the corresponding period in the previous fiscal year.
While corporate tax collections under advance tax recorded a healthy growth of 5.68%, non-corporate tax under the same head saw a contraction of 2.68%.
On a gross basis, before accounting for refunds, direct tax collections reached ₹5.45 lakh crore — reflecting a 4.86% growth over last year’s gross figures.
This update comes as the Centre works toward meeting its fiscal deficit target of 4.4% of GDP for the financial year 2025-26, as outlined in the Union Budget.
Officials suggest that while the net figures are temporarily dampened by higher refunds, overall trends remain stable with encouraging signs in corporate tax performance.
