Latest news with #HiteshSawhney
&w=3840&q=100)
Business Standard
2 days ago
- Business
- Business Standard
Net direct tax collection down 4% to nearly ₹6.63 trillion till August 11
Net direct tax collection contracted nearly 4 per cent to about ₹6.63 trillion as on August 11 2025-26 due to a 21.2 per cent surge in corporation-tax refunds, the data released by the Central Board of Direct Taxes (CBDT) showed. Gross direct tax collection too contracted 1.87 per cent to ₹7.99 trillion so far in FY26. For FY26, the Centre has projected direct tax receipts at ₹25.2 trillion. In FY25, net direct tax collection rose 13.57 per cent to ₹22.26 trillion, surpassing the initial Budget estimate of ₹22.07 trillion. 'Gross receipts might have declined as the majority of the taxpayers have shifted to the new tax regime. Also, after the government announced a rebate for an income up to ₹12 lakh per annum and revised the tax slabs, it might have collected less tax deducted at source, leading to low revenue from personal income tax,' a government official said. Net non-corporation tax, which includes taxes paid by individuals, Hindu undivided families, firms, bodies of individuals, associations of persons, local authorities, and artificial juridical persons, decreased 7.45 per cent on a yearly basis to ₹4.12 trillion during the same period. Net corporation-tax collection grew around 3 per cent year-on-year to ₹2.28 trillion. Securities transaction tax (STT) collection also rose 3.5 per cent to ₹22,362 crore during the same period. Refunds released as of August 11 stood at ₹1.34 trillion, of which a major chunk, ₹1.03 trillion, went to companies. Direct-tax refunds increased by 9.8 per cent. According to experts, the tepid performance of direct-tax collection so far has been significantly affected by the high volume of refunds, particularly in corporation tax. According to Hitesh Sawhney, partner with PwC, this trend highlights the dynamic nature of tax administration and the impact of refund outflows on the government's net revenue position in the early part of the financial year. The decline in non-corporation tax collection may indicate stress in the formal sector, he said. Aditi Nayar, chief economist, Icra, said extending the last date for filing income-tax return (ITR) was a reason for subdued growth in personal income tax collection. The Centre had extended the deadline for ITR filing from July 30 to September 15. 'The data on advance tax collection suggests that the government's personal income-tax and corporation-tax collection is required to record high double-digit growth in the remaining part of FY26, to meet their respective FY26 targets. While this may seem challenging, the growth rates in net tax collection are likely to improve as the year progresses, and the base normalises,' Nayar stated.
New Indian Express
2 days ago
- Business
- New Indian Express
Net tax collection slips 3.95% as refunds surge
Net tax collection by the mid of the second quarter of FY26 (till August 11, 2025) has contracted by 3.95% compared to the corresponding period last year, as per the latest data released by the Central Board of Direct Taxes (CBDT). The latest figures released by CBDT reveal that the net advance tax collection by the mid of the second quarter of FY26 stood at Rs 6.63 lakh crore, which previously stood at Rs 6.91 lakh crore as on August 11, 2024. The gross tax collection also registered a fall of 1.87%, as it went down from Rs 8.14 lakh crore in the corresponding period previous year to Rs 7.98 lakh crore. The refunds have gone up by 9.81% to Rs 1.34 lakh crore during the period, compared to Rs 1.03 lakh crore in the previous fiscal year's corresponding period. 'The decline in the net collections is mainly due to the higher volume of refunds issued, especially for the corporate tax. One has to also understands tax collections cannot just have one way trajectory and are more dynamic in nature and what we are observing is basically just the impact of refund outflows on the government's net revenue position in the early part of the fiscal year,' says Hitesh Sawhney, partner, Price Waterhouse & Co LLP. The fall in the tax collection is primarily due to the sharp decline in personal income tax collection. While the corporate tax collection has gone up slightly by around 3%, personal income tax collection went down by more than 7% during the period. Previously, under the new tax regime (for 2024-25), taxpayers with income up to Rs 7 lakh had to pay no taxes. But from 2025-26, the exemption limit has been increased to Rs 12 lakh, making income up to Rs 12 lakh completely tax-free under the new regime.
&w=3840&q=100)
Business Standard
2 days ago
- Business
- Business Standard
Net direct tax collection down 4% to ₹6.63 trillion till August 11
Net direct tax collection contracted nearly 4 per cent to about ₹6.63 trillion as on August 11 2025-26 due to a 21.2 per cent surge in corporation-tax refunds, the data released by the Central Board of Direct Taxes (CBDT) showed. Gross direct tax collection too contracted 1.87 per cent to ₹7.99 trillion so far in FY26. For FY26, the Centre has projected direct tax receipts at ₹25.2 trillion. In FY25, net direct tax collection rose 13.57 per cent to ₹22.26 trillion, surpassing the initial Budget estimate of ₹22.07 trillion. 'Gross receipts might have declined as the majority of the taxpayers have shifted to the new tax regime. Also, after the government announced a rebate for an income up to ₹12 lakh per annum and revised the tax slabs, it might have collected less tax deducted at source, leading to low revenue from personal income tax,' a government official said. Net non-corporation tax, which includes taxes paid by individuals, Hindu undivided families, firms, bodies of individuals, associations of persons, local authorities, and artificial juridical persons, decreased 7.45 per cent on a yearly basis to ₹4.12 trillion during the same period. Net corporation-tax collection grew around 3 per cent year-on-year to ₹2.28 trillion. Securities transaction tax (STT) collection also rose 3.5 per cent to ₹22,362 crore during the same period. Refunds released as of August 11 stood at ₹1.34 trillion, of which a major chunk, ₹1.03 trillion, went to companies. Direct-tax refunds increased by 9.8 per cent. According to experts, the tepid performance of direct-tax collection so far has been significantly affected by the high volume of refunds, particularly in corporation tax. According to Hitesh Sawhney, partner with PwC, this trend highlights the dynamic nature of tax administration and the impact of refund outflows on the government's net revenue position in the early part of the financial year. The decline in non-corporation tax collection may indicate stress in the formal sector, he said. Aditi Nayar, chief economist, Icra, said extending the last date for filing income-tax return (ITR) was a reason for subdued growth in personal income tax collection. The Centre had extended the deadline for ITR filing from July 30 to September 15. 'The data on advance tax collection suggests that the government's personal income-tax and corporation-tax collection is required to record high double-digit growth in the remaining part of FY26, to meet their respective FY26 targets. While this may seem challenging, the growth rates in net tax collection are likely to improve as the year progresses, and the base normalises,' Nayar stated.
