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Time of India
5 days ago
- Business
- Time of India
I-T relief: Growth in direct tax receipts dips to 3.2%
NEW DELHI: Growth in gross direct tax collections moderated to 3.2% in the fiscal year up to July 10, from 4.9% three weeks ago, driven by a slowdown in non-corporation tax. Latest data released by govt estimated gross collections of Rs 6,64,807 crore between April and July 10. Net direct tax collections - which means after refunds - are estimated to have declined 1.3% to Rs 5,62,827 crore on account of a 38% jump in refunds to Rs 1,01,980 crore. Up to June 19, when data was last released, refunds were estimated to have surged 58% to Rs 86,385 crore. "While fall in net direct tax collection is largely driven by an increase in refunds issued this year, the overall fall in direct taxes can be explained by two major factors. On the personal tax front, the revised slab structure continues to offer relief to a large base of taxpayers, resulting in reduced tax liability. On the corporate side, higher capital expenditure has led to increased depreciation claims, thereby impacting immediate tax outflows. These measures, from expedited refunds to tax relief and capex incentives are aligned with the broader objective of stimulating economic activity and supporting long-term growth," said Samir Kanabar, tax partner at EY India. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Velletri: L'ultima soluzione acustica svizzera: ingegnosa e quasi invisibile Migliora Udito Undo FM Nirmala Sitharaman recently pushed senior officials to ensure that refunds are cleared. "The decline in net direct tax collections is primarily due to a rise in the volume of tax refunds processed," said Gouri Puri, partner at Shardul Amarchand Mangaldas & Co. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
5 days ago
- Business
- Business Standard
India's net direct tax receipts down 1.3%, corporate taxes slip 3.7%
India's net direct tax collections contracted 1.3 per cent to about ₹5.63 trillion as of July 10, with corporate taxes dropping 3.7 per cent and non-corporate taxes recording a fractional 0.04 per cent contraction, Income Tax department data released on Friday revealed. The Securities Transaction Tax was the only levy to clock an uptick so far in this financial year, rising 7.46 per cent to ₹17,874 crore, from ₹16,632 crore through the same period of 2024-25 (FY25). Prior to refunds made to taxpayers, which jumped 38 per cent to nearly ₹1.02 trillion by July 10, gross tax receipts had risen 3.17 per cent to almost ₹6.65 trillion. The growth in gross tax receipts was slightly higher at 4.86 per cent about a month ago, when total collections stood at ₹5.45 trillion. Net tax collections were 1.4 per cent lower than a year ago, as of June 19. Overall corporate tax receipts were up 9.42 per cent by July 10, however, they received a significant chunk of the tax refunds made so far, adding up to ₹89,863 crore which reflects a 56.85 per cent growth. Net non-corporate tax receipts, which includes taxes paid by individuals, Hindu Undivided Families, firms, bodies of individuals, associations of persons, local authorities, and artificial juridical person, declined marginally to about ₹3.45 trillion during the same period. Refunds to such taxpayers, however, fell nearly 27 per cent year on year to ₹12,114 crore. Tax experts broadly attributed the decrease in the net direct tax kitty to the spike in refunds but noted there were other factors at play as well. 'On the personal tax front, the revised slab structure continues to offer relief to a large base of taxpayers, resulting in reduced tax liability,' said Samir Kanabar, tax partner at EY India. 'On the corporate side, higher capital expenditure has led to increased depreciation claims, thereby impacting immediate tax outflows. These measures, from expedited refunds to tax relief and capex incentives are aligned with the broader objective of stimulating economic activity and supporting long-term growth,' he noted. The Centre's Budget estimates for FY26 peg direct tax receipts at ₹25.2 trillion. Net direct tax collections had grown 13.57 per cent to ₹22.26 trillion in FY25, exceeding the initial budgeted target of ₹22.07 trillion. Gouri Puri, partner at Shardul Amarchand Mangaldas & Co, linked the decline in net direct tax receipts primarily to the higher tax refunds. 'This reflects the government's focus on improving taxpayer services, as timely and efficient refund processing is a critical enabler of ease of doing business," she said.
Time of India
22-06-2025
- Business
- Time of India
Refunds Dent Net Direct Tax Mopup
India's net direct tax collections declined 1.39% year-on-year to ₹4.58 lakh crore as of June 19 this fiscal, primarily due to a sharp 58% increase in refunds and muted growth in advance tax payments, official data showed. The figure includes ₹1.72 lakh crore from corporate tax and ₹2.72 lakh crore from personal income tax . India Inc's advance tax payments — a barometer of corporate performance and economic outlook — grew 4% year-on-year to ₹1.55 lakh crore. The rate of growth fell sharply from the year-ago period when advance tax collection grew 27% on-year to ₹1.48 lakh crore. Gross direct tax collections stood at ₹5.45 lakh crore, a 5% increase from the same period last year. However, the income tax department issued refunds of ₹86,385 crore until June 19, compared to ₹54,661 crore a year ago, pulling net collections down. 'The revised tax slabs and reduced personal tax rates that came into effect from April 1, 2025, have provided relief to salaried individuals, and this is naturally reflected in lower TDS collections,' said Samir Kanabar, tax partner at EY India. While higher volume of corporate tax refunds may weigh on short-term collection figures, it is also a sign of administrative efficiency, he said. A more balanced picture may emerge in the coming quarters, he added. Officials expect tax collections to catch up to meet the budget targets in the coming quarters even though global uncertainties amid US tariff threats and escalating Israel-Iran conflict may have some impact on corporate sentiments. 'We expect the collections to improve in the coming quarters as more people will file the returns,' a senior official told ET. The Centre has budgeted ₹25.2 lakh crore in net direct tax revenue for FY26, up from ₹22.3 lakh crore in FY25, when collections rose 13.6%, exceeding initial budgeted target. 'For a number of reasons, India finds itself in the position of strength amidst the ongoing global supply chain reset and, therefore, a turnaround in tax collections in next quarters could be quite likely,' said Sumit Singhania, partner at Deloitte India. Finance minister Nirmala Sitharaman is scheduled to engage with principal chief commissioners of the Income Tax Department next week to take stock of zone-wise collection trends and litigation management. The meeting will review age-wise pendency of appeals and push for faster disposal of legacy cases to reduce litigation burden, officials cited above said.
Economic Times
22-06-2025
- Business
- Economic Times
Refund surge, slow advance tax drag down India's net collections
India's net direct tax collections declined 1.39% year-on-year to ₹4.58 lakh crore as of June 19 this fiscal, primarily due to a sharp 58% increase in refunds and muted growth in advance tax payments, official data showed. The figure includes ₹1.72 lakh crore from corporate tax and ₹2.72 lakh crore from personal income tax. India Inc's advance tax payments — a barometer of corporate performance and economic outlook — grew 4% year-on-year to ₹1.55 lakh crore. The rate of growth fell sharply from the year-ago period when advance tax collection grew 27% on-year to ₹1.48 lakh crore. Gross direct tax collections stood at ₹5.45 lakh crore, a 5% increase from the same period last year. However, the income tax department issued refunds of ₹86,385 crore until June 19, compared to ₹54,661 crore a year ago, pulling net collections down. 'The revised tax slabs and reduced personal tax rates that came into effect from April 1, 2025, have provided relief to salaried individuals, and this is naturally reflected in lower TDS collections,' said Samir Kanabar, tax partner at EY India. While higher volume of corporate tax refunds may weigh on short-term collection figures, it is also a sign of administrative efficiency, he said. A more balanced picture may emerge in the coming quarters, he added. Officials expect tax collections to catch up to meet the budget targets in the coming quarters even though global uncertainties amid US tariff threats and escalating Israel-Iran conflict may have some impact on corporate sentiments. 'We expect the collections to improve in the coming quarters as more people will file the returns,' a senior official told ET. The Centre has budgeted ₹25.2 lakh crore in net direct tax revenue for FY26, up from ₹22.3 lakh crore in FY25, when collections rose 13.6%, exceeding initial budgeted target. 'For a number of reasons, India finds itself in the position of strength amidst the ongoing global supply chain reset and, therefore, a turnaround in tax collections in next quarters could be quite likely,' said Sumit Singhania, partner at Deloitte India. Finance minister Nirmala Sitharaman is scheduled to engage with principal chief commissioners of the Income Tax Department next week to take stock of zone-wise collection trends and litigation management. The meeting will review age-wise pendency of appeals and push for faster disposal of legacy cases to reduce litigation burden, officials cited above said.
Time of India
22-06-2025
- Business
- Time of India
Refund surge, slow advance tax drag down India's net collections
India's net direct tax collections declined 1.39% year-on-year to ₹4.58 lakh crore as of June 19 this fiscal, primarily due to a sharp 58% increase in refunds and muted growth in advance tax payments , official data showed. The figure includes ₹1.72 lakh crore from corporate tax and ₹2.72 lakh crore from personal income tax . India Inc's advance tax payments — a barometer of corporate performance and economic outlook — grew 4% year-on-year to ₹1.55 lakh crore. The rate of growth fell sharply from the year-ago period when advance tax collection grew 27% on-year to ₹1.48 lakh crore. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like War Thunder - Register now for free and play against over 75 Million real Players War Thunder Play Now Undo Gross direct tax collections stood at ₹5.45 lakh crore, a 5% increase from the same period last year. However, the income tax department issued refunds of ₹86,385 crore until June 19, compared to ₹54,661 crore a year ago, pulling net collections down. 'The revised tax slabs and reduced personal tax rates that came into effect from April 1, 2025, have provided relief to salaried individuals, and this is naturally reflected in lower TDS collections,' said Samir Kanabar, tax partner at EY India. Live Events While higher volume of corporate tax refunds may weigh on short-term collection figures, it is also a sign of administrative efficiency, he said. A more balanced picture may emerge in the coming quarters, he added. Officials expect tax collections to catch up to meet the budget targets in the coming quarters even though global uncertainties amid US tariff threats and escalating Israel-Iran conflict may have some impact on corporate sentiments. FM's Key Meeting Next Week 'We expect the collections to improve in the coming quarters as more people will file the returns,' a senior official told ET. The Centre has budgeted ₹25.2 lakh crore in net direct tax revenue for FY26, up from ₹22.3 lakh crore in FY25, when collections rose 13.6%, exceeding initial budgeted target. 'For a number of reasons, India finds itself in the position of strength amidst the ongoing global supply chain reset and, therefore, a turnaround in tax collections in next quarters could be quite likely,' said Sumit Singhania, partner at Deloitte India. Finance minister Nirmala Sitharaman is scheduled to engage with principal chief commissioners of the Income Tax Department next week to take stock of zone-wise collection trends and litigation management. The meeting will review age-wise pendency of appeals and push for faster disposal of legacy cases to reduce litigation burden, officials cited above said.
