Archive · 21 Jun 2025
India's Direct Tax Collection Dips in Q1 FY26
The Indian government's direct tax revenue slightly decreased in the first part of the year.
This is because tax refunds increased a lot.
While overall tax collections were down a bit, money paid in advance for taxes showed slower growth than the previous year.
Corporate tax payments increased but payments from individuals and other non-corporate entities decreased.
The government aims to collect a large amount of taxes this year.
Net direct tax collection dipped by 1.39% to Rs 4.59 lakh crore.
Advance tax collections grew by 3.87%, a slowdown compared to last year.
Corporate advance tax payments increased by 5.86%.
Non-corporate tax payments declined by 2.68%.
Refund issuances increased by 58% to Rs 86,385 crore.
- Who
- Indian Government and taxpayers.
- What
- Direct tax revenue performance.
- When
- Up to June 19, 2025 (Q1 FY26).
- Where
- India.
- Why
- To assess economic activity and government revenue trends.
Economic Impact
Taxpayer Benefits
Government Spending vs. Taxpayer Benefits
Economic Impact
Slower tax growth may limit government spending.
Taxpayer Benefits
Higher refunds benefit taxpayers.
- Net Direct Tax Collection (Q1 FY26)
- Rs 4.59 lakh crore
- Decline in Tax Collection
- 1.39%
- Advance Tax Growth
- 3.87%
- Corporate Advance Tax Growth
- 5.86%
- Refund Increase
- 58%
Sources
India's gross direct tax collections rise 4.86% to ₹5.45 lakh crore in FY26 so far, net collections dip – Here's why
I-T action being taken for non-compliant taxpayers with foreign income: FinMin
Net Direct Tax Collections Drop 1.39% Despite Gross Growth - Here’s Why
Net direct tax collection dips 1.39 pc to Rs 4.59 lakh cr in Apr-Jun
GST Evasion of Rs 2 Trn Detected In FY25
Net direct tax collection slips 1.39% to ₹4.59 lakh crore in first quarter amid slower advance tax growth
Net direct tax collection dips 1.39 pc to ₹4.59 lakh cr on lower advance tax mop-up, higher refunds
Net direct tax collection dips 1.39 pc to Rs 4.59 lakh cr on lower advance tax mop-up, higher refunds
Jump in refunds depresses Centre’s net direct tax revenue
