Archive · 29 Jul 2025
Q1 Direct Tax Collections Show Slower Growth, Refunds Up
The government collects taxes throughout the year, and the first few months give clues about how the rest of the year will go.
Recent tax collection data shows that while the total amount collected increased a little, the growth is slower compared to the last few years.
Tax refunds are also up a lot.
To meet the government's tax goals for the year, collections will need to increase significantly in the coming quarters.
First quarter direct tax collections for FY26 show a 1.39% decrease year-on-year.
Gross collections increased by 4.86% in the first quarter of FY26.
Advance tax for companies grew by 5.86% YoY, while non-corporate advance tax fell.
Refunds saw a significant increase of 58.04% year-over-year.
Meeting the direct tax growth target for FY26 requires substantial growth in the remaining quarters.
- Who
- Central Board of Direct Taxes (CBDT), taxpayers.
- What
- Direct tax collections in the first quarter of FY26.
- When
- First quarter of FY26 (June Quarter), as of June 19, 2025.
- Where
- Not explicitly mentioned.
- Why
- To assess the trajectory of annual tax revenue growth and the feasibility of meeting revenue targets.
Tax Collection Analysis
CBDT and Taxpayers
Growth Rate Implications
Tax Collection Analysis
Concern over slow growth.
CBDT and Taxpayers
Focus on gross collections and future quarters.
- Net Collection Change (YoY)
- -1.39%
- Gross Collection Growth (YoY)
- 4.86%
- Company Advance Tax Growth (YoY)
- 5.86%
- Non-Corporate Advance Tax Change
- -2.68%
- Refunds Growth (YoY)
- 58.04%
- FY26 Corporation Tax Target
- ₹ 10.82 lakh crore
- FY26 Income Tax Target
- ₹ 14.38 lakh crore
Sources
As the economy grows, so would tax collection; hopeful of meeting FY26 target: CBDT Chairman Ravi Agrawal
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