Direct tax collections rise 4.9%; advance tax up 3.9% in FY26 so far

India's direct tax collection for the financial year 2025-26 rose by 4.86% to Rs 5.45 lakh crore as of June 19, according to the latest figures released by the income tax department. However, net collections saw a marginal decline due to a sharp spike in refunds.The total gross collections which include corporate tax, non-corporate tax, securities transaction tax (STT), and other levies — stood at Rs 5,45,207 crore, up from Rs 5,19,936 crore during the same period last year.There was the 58.04% jump in tax refunds, which soared to Rs 86,385 crore from Rs 54,661 crore a year ago. This surge in refunds likely reflects improved taxpayer services and faster processing.As a result, net direct tax collection saw a marginal decline of 1.39%, falling to Rs 4,58,822 crore from Rs 4,65,275 crore in the previous year.Overall advance tax receipts grew by 3.87% to Rs 1,55,533 crore. Corporate advance tax grew by 5.86% to Rs 1,21,604 crore, but non-corporate advance tax — which includes payments by individuals, firms, and other entities — slipped 2.68% to Rs 33,928 crore.