Despite modest growth in advance tax receipts, India’s net direct tax collections for the April–June period of the current fiscal have registered a slight year-on-year decline — a signal that economic buoyancy may be softening after the previous year’s robust uptick.
According to figures released by the Income Tax Department on Sunday, the net direct tax collection stood at ₹4.59 lakh crore between April 1 and June 19, 2025. This marks a 1.39 per cent drop compared to ₹4.65 lakh crore collected in the corresponding period last year.
The data suggests that the primary drag has come from corporate tax, which declined by over 5 per cent to approximately ₹1.73 lakh crore. In contrast, non-corporate tax receipts—mainly comprising personal income tax—rose marginally by 0.7 per cent to ₹2.73 lakh crore.
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Advance tax collections, a key indicator of corporate earnings outlook, grew by only 3.87 per cent to ₹1.56 lakh crore. This is in sharp contrast to the 27 per cent rise recorded during the same period in FY2024. Within this segment, corporate advance tax grew by 5.86 per cent to ₹1.22 lakh crore, while non-corporate advance tax collections declined by 2.68 per cent to ₹33,928 crore.
Gross direct tax collections for the same period stood at ₹5.45 lakh crore, reflecting a modest growth of 4.86 per cent over the year-ago level.
Refunds issued during the April–June stretch shot up significantly by 58 per cent to ₹86,385 crore, further denting the net tax figures.
Securities Transaction Tax (STT) receipts rose to ₹13,013 crore, a 12 per cent increase, offering one of the few bright spots in the latest tax data.
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