Net collection of direct tax fell by 1.39 per cent to ₹4.59 lakh crore, led by weaker advance tax collection and robust refunds to taxpayers, data published by Central Board of Direct Tax (CBDT) showed on Saturday.
The net collection, which is arrived at by deducting refunds issued to taxpayers from the gross collection, had stood at ₹4.65 lakh crore in the same period of last year. The government had reported a 21 per cent rise in net tax collection in June 17, 2024.
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 same 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.
Tax expert Samir Kanabar attributed the moderation in the collection of advance tax by non-corporates to the tax break announced by the Narendra Modi government in the Budget this year.
Advance tax is paid in four instalments—in June, September, December, and March.
The CBDT data showed refund issuances increased by 58 per cent to ₹86,385 crore till June 19, this fiscal. In the comparable period, the department had reported a 33.7 per cent higher refunds in 2024.
Gross direct tax collection stood at ₹5.45 lakh crore this fiscal as yet, logging a growth of 4.86 per cent from the year-ago period. It had grown by 22.19 per cent in June 2024.
During April 1-June 19, 2025, net corporate tax collection witnessed a decline of 5 per cent to ₹ 1.73 lakh crore. Non-corporate tax collections, which mainly include 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 and aims to collect ₹78,000 crore from STT in FY26.