Net direct tax collection dips 1.39 pc to ₹4.59 lakh cr on lower advance tax mop-up, higher refunds

New Delhi, Jun 21 (PTI) Net direct tax collection so far this fiscal dipped 1.39 per cent to ₹4.59 lakh crore, on slowdown in advance tax mop-up and higher refunds, government data released on Saturday showed.

Advance tax, which is an indicator of corporate profitability and income of individuals, grew a meagre 3.87 per cent to ₹1.56 lakh crore between April 1-June 19, 2025. In the comparable period in 2024, advance tax collection had recorded an annual growth of 27 per cent.

Advance tax paid by corporates saw a growth of 5.86 per cent to ₹1.22 lakh crore, while those by non-corporates, including individuals, HUFs and firms, dropped 2.68 per cent to ₹33,928 crore.

Advance tax is paid in four instalments -- in June, September, December, and March.

Refund issuances increased by 58 per cent to ₹86,385 crore till June 19, this fiscal.

Gross direct tax collection stood at ₹5.45 lakh crore so far this fiscal, logging a growth of 4.86 per cent from the year-ago period.

Overall, the net direct tax collection kitty stood at about ₹4.59 lakh crore in the fiscal till June 19, 2025, registering a 1.39 per cent dip from ₹4.65 lakh crore collected in the corresponding period in 2024.

During April 1-June 19, 2025, net corporate tax collection witnessed a slowdown at about ₹1.73 lakh crore, a decline of over 5 per cent year on year.

Non-corporate tax collections, which include mainly personal income tax, however, recorded a slight increase of 0.7 per cent to ₹2.73 lakh crore.

Securities Transaction Tax (STT) grew 12 per cent to ₹13,013 crore during the period.

In the current fiscal (2025-26), the government has projected its direct tax collections at ₹25.20 lakh crore, up 12.7 per cent year on year. The government has collected 18.21 per cent of its direct tax target till June 19. The government aims to collect ₹78,000 crore from STT in FY26.