Net direct tax collection dips 1.39% to Rs 4.59 lakh Cr

New Delhi, Jun 21: Net direct tax collection so far this fiscal year dropped 1.39 per cent to Rs 4.59 lakh crore, on slowdown in advance tax mop-up and higher refunds, government data released on Saturday showed.

Advance tax, which is an indicator of corporate profitability and income of individuals, grew a meagre 3.87 per cent to Rs 1.56 lakh crore between April 1 and June 19, 2025. In the comparable period in 2024, advance tax collections had recorded an annual growth of 27 per cent.

Advance tax paid by corporates saw a growth of 5.86 per cent to Rs 1.22 lakh crore, while those by non-corporates, including individuals, HUFs and firms, dropped 2.68 per cent to Rs 33,928 crore.

Advance tax is paid in four instalments -- in June, September, December, and March.

Experts said attributed the slowdown in direct tax mop-up in the first quarter to the personal I-T rate revisions, which took effect from April 1. Higher capex by corporate also lowered tax profit, they said.

Between April 1 and June 19, 2025, refund issuances increased 58 per cent to Rs 86,385 crore.

Gross direct tax collection stood at Rs 5.45 lakh crore so far this fiscal year, logging a growth of 4.86 per cent in the year-ago period.

Overall, the net direct tax collection kitty stood about Rs 4.59 lakh crore in the fiscal year till June 19, 2025, registering a 1.39 per cent dip from Rs 4.65 lakh crore collected in the corresponding period a year ago.

During April 1-June 19, 2025, net corporate tax collection witnessed a slowdown at Rs 1.73 lakh crore, a decline of over 5 per cent year-on-year.