New Delhi: Net direct tax collections in the first two months of the current fiscal fell by almost 48% on account of higher tax refunds.
Net direct tax collections in April and May almost halved to Rs 12,954 crore, as against Rs 24,878 crore in the corresponding year ago period, a press release issued by the finance ministry said.
Though gross direct tax collections were up by 37.34% to Rs 50,405 crore, a substantial increase in tax refunds made a dent in net direct tax collections. Tax refunds grew by 217% to Rs 37,451 crore in the first two months of 2011-12, as against Rs 11,824 crore in the year ago period. More than 40 lakh refunds have been issued in the current fiscal.