Tax collections dip: Net direct tax mop-up falls 1.34% to Rs 5.63 lakh crore as refunds surge; gross receipts rise 3.17%

Net direct tax collections slipped 1.34% year-on-year to Rs 5.63 lakh crore in the April 1–July 10 period of FY26, according to official data released Friday, with the dip attributed to a sharp rise in refunds issued during the period.

Gross direct tax collections before refunds, however, rose 3.17% to Rs 6.65 lakh crore, up from Rs 6.44 lakh crore a year earlier, PTI reported.

The decline in net mop-up was led by a 38% increase in refunds, which stood at Rs 1.02 lakh crore as of July 10.

Of the total net collections, corporate tax contributed around Rs 2 lakh crore, while non-corporate taxes — including those paid by individuals, HUFs, and firms — totalled Rs 3.45 lakh crore. Securities Transaction Tax (STT) collections stood at Rs 17,874 crore during the period.

For FY26, the Centre has pegged its direct tax collection target at Rs 25.20 lakh crore, reflecting a 12.7% year-on-year growth. The government expects Rs 78,000 crore in STT revenue alone during the fiscal.