Decline in direct tax collection and 38% increase in refunds, will the government's concern increase?

Net direct tax collection

The kind of figures that have come up so far for direct tax collection are quite shocking. Where on the one hand, the net direct tax collection has seen a decline of more than 1 percent till July 10. On the other hand, during this time, there has been a 38 percent increase in refund. Now the biggest question is whether this has been done by taxing up to 12 lakh earnings? Or there are some other reasons. According to experts, there can be further decline in tax collection in the coming days. Let us also tell you what kind of figures are being seen.

Decline in tax collection

The NET direct tax collection declined by 1.34 percent to about 5.63 lakh crore rupees till 10 July in the current financial year. Tax collection has decreased mainly due to more refunds. At the same time, the net company tax collection fell 3.67 percent to about two lakh crore rupees, which was 2.07 lakh crore rupees in the same period last year. Non-company tax (including individual, HUF and firm) was Rs 3.45 lakh crore. The security transaction tax collection was Rs 17,874 crore between April 1 and July 10. During this period, the total net collection of the country was Rs 5.63 lakh crore, which is 1.34 percent less than Rs 5.70 lakh crore in the same period last year.

Increase in refund

The net refund released so far in the current financial year (2025-26) increased by 38 percent to Rs 1.02 lakh crore. From April 1 to July 10, the gross collection (before the refund) stood at Rs 6.65 lakh crore, which is 3.17 percent more than 6.44 lakh crore rupees in the same period last year. The gross company tax collection increased by 9.42 per cent to about Rs 2.90 lakh crore by June 10, while the gross non-company tax collection declined by 1.28 per cent to Rs 3.57 lakh crore.

Why direct tax collection has reduced?

Gauri Puri, partner of Shardul Amarchand Mangaldas & Company, said that decrease in net direct tax collection is mainly due to increase in tax refund. Puri said that it shows the government's attention on improving services to taxpayers. Timely and efficient returns increase business ease. In the current financial year, the government has estimated the direct tax collection to be Rs 25.20 lakh crore, which is 12.7 percent more than the previous year. The government's target is a target of raising Rs 78,000 crore from securities transactions (STT) in the current financial year. The government has raised up to 22.34 percent of the target of direct tax collection till July 10.