Particle.news
Download on the App Store
11 ARTICLES
·
last mo.

Rising Refund Payments Push India’s Net Direct Tax Revenue Down 3.95% Through Early August

Surging corporate refunds have hollowed early-year net receipts, undermining chances of hitting the Rs 25.2 lakh crore FY26 direct tax goal.

Image
Refunds to corporate taxpayers surged over 21.24% to ₹1,03,863 crore in the current period. (Mint File Photo)
'Stockmarketification' at play? Shankar Sharma warns of risks after tax collections slip
Image

Overview

  • Income Tax Department data show net direct tax mop-up fell 3.95% year-on-year to Rs 6.64 lakh crore from April 1 to August 11, with gross collections down 1.87% to Rs 7.99 lakh crore and STT receipts at Rs 22,362 crore.
  • Refunds jumped 9.8% to Rs 1.35 lakh crore, driven by a 21% surge in corporate payouts alongside a 16.5% drop in non-corporate reimbursements.
  • Net corporate tax receipts rose 3% to Rs 2.29 lakh crore, whereas net non-corporate collections contracted 7.45% to Rs 4.12 lakh crore amid weak individual advance-tax flows.
  • Analysts attribute the revenue slowdown to FY26 budget tax reliefs, an extended personal filing deadline and timing shifts in return processing.
  • At 26.3% of the government’s Rs 25.2 lakh crore direct tax target, current collections trail last year’s 31.3% pace, making a strong late-year rebound essential.