Daijiworld Media Network - New Delhi

New Delhi, Jun 21: India’s gross direct tax collections for the ongoing financial year (2025–26) climbed 4.86% year-on-year, reaching Rs 5.45 lakh crore as of June 19, according to fresh data released by the Income Tax Department. This figure includes corporate tax, non-corporate tax, securities transaction tax (STT) and other levies.

However, net direct tax collections fell slightly by 1.39%, totaling Rs 4,58,822 crore, compared to Rs 4,65,275 crore during the same period last year. The drop was attributed to a sharp increase in tax refunds, which surged 58.04% to Rs86,385 crore this fiscal so far.

The Central Board of Direct Taxes (CBDT) detailed the net collections as follows:

• Corporate Tax (net of refunds): Rs 1.72 lakh crore
• Non-Corporate Tax (net): Rs 2.72 lakh crore
• Securities Transaction Tax (STT): Rs 13,013 crore

While non-corporate tax advance payments declined by 2.68%, corporate advance tax collections saw a 5.68% increase, contributing to an overall growth of 3.87% in advance tax receipts, which totaled Rs 1,55,533 crore.

Direct taxes, levied on income and profits, are paid directly to the government by individuals and businesses. The I-T department recently launched a simplified 'e-Pay Tax' feature to make compliance more user-friendly. Furthermore, the government has proposed a complete revamp of the Income-tax Act, 1961, in the Union Budget, aiming to make the law clearer and more transparent.

In a related boost to public finances, Goods and Services Tax (GST) collections for May 2025 reached Rs 2.01 lakh crore, registering a 16.4% rise from Rs 1.72 lakh crore in May 2024. This marks the second consecutive month of GST collections exceeding Rs 2 lakh crore, pointing to strong economic momentum and healthy consumer demand.

In April, GST revenues had touched a record Rs 2.37 lakh crore, indicating a consistent upward trend in indirect tax collections, as per data from the Ministry of Finance.