India's net direct tax collection falls 1.3% during April 1-July 10

India’s net direct tax collection fell by 1.34% year-on-year to Rs 5.63 lakh crore in the current financial year as of July 10, 2025, according to data from the Income Tax Department released Friday.

The total net direct tax mop-up stood at Rs 5,62,827 crore, compared to Rs 5,70,483 crore collected in the same period last year.

The decline was largely due to a sharp rise in tax refunds, which jumped by 38.01% to Rs 1,01,980 crore.

Gross direct tax collections rose 3.17% to Rs 6,64,807 crore during April 1–July 10, 2025. This includes Rs 2,89,773 crore from corporate taxes, Rs 3,56,887 crore from non-corporate taxes, and Rs 17,874 crore from securities transaction tax.

In comparison, the gross collection in the same period last year was Rs 6,44,375 crore, with net collections of Rs 5,70,483 crore after refunds.

In June, the government reported that net direct tax collection saw a marginal decline of 1.39%, falling to Rs 4,58,822 crore from Rs 4,65,275 crore in the previous year.