Advance income tax collections up 4% in FY26 so far, net direct tax kitty down 1.5%: Key takeaways

Advance Income Tax Data April-June 2025: The central government collected Rs 1.54 lakh crore in advance income tax between April and June 16, official data showed on Tuesday. That marked an increase of 4.0 per cent over the corresponding period a year ago, modest growth attributed to a high base, income tax relief announced in Budget 2025, and global economic uncertainties. Meanwhile, net direct tax collections marked a marginal decline of 1.5 per cent compared with the year-ago period. Income tax and corporate tax are types of direct taxes.

Here are 10 key takeaways from this story:

• The advance income tax numbers cover a roughly 10-week period of the current financial year, which began on April 1.
• The data comes amidst the ongoing income tax season, with an extended deadline of September 15 for filing income tax returns (ITRs) for assessment year 2025-26 (income earned in financial year 2024-25).
• According to the latest numbers, net post-refund direct tax collections stand at Rs 4.56 lakh crore, as of June 1.
• The minor year-on-year drop is largely attributed to a surge in refunds and a high base effect, according to an official.
• The advance collections comprise Rs 1.21 lakh crore from corporate tax and Rs 32,970 crore in personal income tax.
• For the corresponding period in 2024, the collections were recorded at Rs 1.48 lakh crore, marking a year-on-year jump of 27 per cent.
• The taxman expects limited growth in collections going forward. "Due to relief given in income tax in budget up to Rs 12.75 lakh (with standard deduction), personal income tax (collections) will be lower in coming months also," another official told Zee Business.
• Prior to refunds, the government's gross tax collections were registered at Rs 5.41 lakh crore, marking an increase of 5 per cent on a year-on-year basis.
• The refunds grew 61 per cent to Rs 85,675 crore, according to the data.
• Within net tax collections, corporate tax stood at Rs 1.72 lakh crore and personal income tax at Rs 2.84 lakh crore.