Centres gross tax collections dip 1.9% to this point this 12 months, refunds squeeze internet collections additional

The Union authorities’s gross direct tax collections contracted 1.9% to ₹7.99 lakh crore within the present monetary 12 months 2025-26 as much as August 11, 2025, in keeping with knowledge launched by the Central Board of Direct Taxes. Higher refunds additionally meant that internet collections contracted 3.9% throughout this era.

The Centre’s gross direct tax collections for the earlier monetary 12 months stood at ₹8.14 lakh crore until August 11, 2024. Notably, the shortfall in gross collections this 12 months comes as a result of decrease collections from the non-corporate tax class, which additionally consists of revenue tax collections.

Non-corporate tax collections have fallen to ₹4.43 lakh crore on this monetary 12 months to this point, down 8.3% from the ₹4.83 lakh crore collected in the identical interval of 2024-25. This class consists of taxes paid by people, Hindu Undivided Families, companies, Associations of Persons (AoPs), Bodies of Individuals (BoIs), native authorities, and synthetic juridical individuals.

Gross company taxes, however, have elevated marginally to ₹3.33 lakh crore to this point this 12 months, up from ₹3.08 lakh crore collected in the identical interval of 2024-25.

Higher refunds

Compounding the contraction in gross collections was the leap in refunds, which elevated 9.8% throughout this era.

“The decline within the internet collections is especially because of the larger quantity of refunds issued, particularly for the company tax,” mentioned Hitesh Sawhney, Partner at Price Waterhouse & Co LLP.

He added that tax collections don’t at all times have a “one-way trajectory” of development and are extra dynamic on a month-to-month foundation.

Net direct tax collections quantity to ₹6.64 lakh crore in 2025-26 to this point, down from ₹6.91 lakh crore within the earlier 12 months.