India’s direct tax collections contract by 1.87%, refunds up by 10%: Govt data

India’s gross direct tax collection fell to ₹7,98,822 crore in the current financial year up to August 11, from ₹8,14,048 crore in the same period last financial year, registering a contraction of 1.87% because of higher refunds to corporate assesses and lower collections from individual taxpayers, according to government data.

Refunds to corporate taxpayers surged over 21.24% to ₹1,03,863 crore in the current period. (Mint File Photo)

Overall refunds to taxpayers (both corporate and individual assesses) jumped by nearly 10% to ₹1,34,948 crore in 2025-26 (from April 1 to August 11) as compared to ₹1,22,895 crore in the same period of financial year 2024-25, contributing to a year-on-year fall in net direct tax revenue.

Net direct tax collections after refunds in FY26 (as on August 11) fell by 3.95% to ₹6,63,874 crore as compared to ₹6,91,153 net revenue up to August 11 of FY25, the data showed.

Refunds to corporate taxpayers surged over 21.24% to ₹1,03,863 crore in the current period (FY26 up to August 11) as compared to ₹85,664 crore in the same period of FY25. In comparison to that, refunds to non-corporate taxpayers (mainly comprising individuals) saw a contraction.

Refunds to non-corporate taxpayers dipped by 16.5% to ₹31,081 crore in the current financial year (as on August 11, 2025) as against ₹37,213 crore refunded in the same period of previous financial year (as on August 11, 2024), according to the official data.

Both gross and net collections from non-corporate taxpayers, mainly comprising individual assesses, saw a year-on-year dip in the current period, which is the other reason for a tardy direct tax mop up during April 1, 2025 to August 11, 2025.

Gross non-corporate tax (NCT) revenue fell by 8.14% to ₹4,43,355 crore in FY26 (up to August 11, 2025) in comparison to ₹4,82,693 crore in FY25 (up to August 11, 2024). After refunds, net NCT fell by 7.45% from ₹4,45,480 crore up to August 11 in FY25 to ₹4,12,274 crore in the same period of FY26, according to the data. Besides individual income-tax or personal income-tax, NCT also includes taxes paid by HUFs, firms, local authorities and artificial juridical persons.

Comparative to NCT, both gross and net corporate tax (CT) revenues showed an upward trend. Gross corporate tax revenue saw 8.02% increase to ₹3,32,822 crore in FY26 (up to August 11, 2025) as compared to ₹3,08,120 crore in the same period of FY25. Net CT revenue after ₹1,03,863 crore refunds in the current financial year (up to August 11), saw a 3% year-on-year growth to ₹2,28,959 crore.