India's gross direct tax collections rise 4.86% to ₹5.45 lakh crore in FY26 so far, net collections dip – Here's why

Mint

4 hours ago

The gross direct tax collections in India for the financial year 2025-26 rose by 4.86 per cent to nearly ₹ 5.45 lakh crore as of June 19, from ₹ 5.19 lakh crore reported during the same period the previous year, according to data released by the Income Tax Department.
There was a marginal dip of 1.39 per cent in the net tax collections, which stood at ₹ 4.59 crore, due to a 58 per cent increase in refunds issued, PTI reported.
As of June 19, advance tax collections for the financial year 2025-26 were ₹ 1.56 lakh crore, a 3.87 per cent growth. The surge in advance tax collections was primarily due to a 5.86 per cent increase in corporate advance tax payments, while collections from non-corporate taxpayers decreased by 2.68 per cent.
Even though corporate tax collections rose, the Securities Transaction Tax (STT) experienced a decrease, and the overall growth in collections was moderated by high refund outflows.
The Income Tax Department recently launched the 'e-Pay Tax' feature, which is an online portal to make payments through the net banking facility of the authorised banks.
The July 2024 Budget included a proposal for an extensive evaluation of the Income Tax Act of 1961. The aim was to streamline the Act for clarity, ultimately minimising disputes and litigation.
On March 25, Union Finance Minister Nirmala Sitharaman mentioned that the new Income Tax Bill will be discussed during the Parliament's monsoon session. The Finance Minister has previously indicated in his budget speech that under the updated tax structure, individuals with earnings up to ₹ 12 lakhs will incur no tax liability thanks to the raised rebate of ₹ 60,000.
On March 18, the government urged stakeholders to provide their suggestions on the newly introduced Income Tax Bill 2025, which is currently being reviewed by the Select Committee for detailed consideration.