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Mint
5 hours ago
- Business
- Mint
Jump in refunds depresses Centre's net direct tax revenue
New Delhi: A sharp jump in tax refunds has led to a modest dip in the union government's net tax revenue receipts from corporate and personal income to ₹4.59 trillion so far this year, official data showed. The union government's net direct tax revenue up to 19 June this year contracted 1.4% annually, although, before adjusting for refunds, it recorded 4.9% growth to ₹5.45 trillion, the Central Board of Direct Taxes (CBDT) said on Saturday. The Income Tax Department issued ₹86,385 crore of corporate and personal income tax refunds in the period, a 58% jump from the year-ago period. The bulk of it was in the corporate tax component. After refunds, non-corporate tax receipt, which mainly comprises personal income tax revenue, stood at ₹2.73 trillion, a slight improvement over the collections in the same period a year ago. Net corporate tax revenue of ₹1.73 trillion, on the other hand, clocked a 5% dip from the year-ago period. Before adjusting for refunds, corporate tax collections saw 9.5% growth and non-corporate taxes a near 1 % improvement, CBDT data showed. Sluggish growth in personal income tax Personal income tax collection growth remained sluggish after the government offered tax relief to middle-income earners in the FY26 budget presented on 1 February, which was estimated in the budget to result in revenue erosion of about ₹1 trillion a year. The tax relief was offered as a consumption stimulus for the economy which, over time, could result in improved demand for goods and services, income growth and better tax revenue collection. 'Refunds have increased by 58.04% as on 19 June compared to corresponding period of last year reflecting better taxpayer services and quicker issuance of refunds,' CBDT said. In terms of modes of payment, advance tax collection of corporate and non-corporate taxes so far this year stood at ₹1.5 trillion, an improvement of 3.87% from the year-ago period. 'Decent growth momentum' This rise in advance tax collection establishes that companies have experienced decent growth momentum in terms of reportable profits in the first quarter, said Amit Maheshwari, Tax Partner at AKM Global, a tax and consulting firm. 'However, the marginal dip in overall net collections can be attributed to higher tax refunds issued in first quarter of FY26. Overall, the numbers suggest that while the economy is stable, the pace of collections could vary depending on how key sectors perform in the face of global turmoil and how refunds are processed,' said Maheshwari.
Hindustan Times
7 hours ago
- Business
- Hindustan Times
Net tax collection dipped, over 58% jump in refunds: Govt data
Gross direct tax collection in 2025-26 (as on June 19) saw little less than 5% annualised growth at over ₹ 5.45 lakh crore, but net revenue dipped 1.4% to ₹ 4.59 lakh crore in the same period because of higher refunds, according to government data released on Saturday. According to the official data, corporate tax (CT) refunds jumped by over 67.3% to ₹ 76,832.08 crore in the first three months (up to June 19) of FY26. (Representational image) Refunds in April 1 to June 19 of FY26 saw over 58% jump to ₹ 86,385.31 crore as compared to ₹ 54,660.79 crore in the same period of FY25, mainly because of higher refunds to corporate taxpayers. 'Refunds have increased by 58.04% (as on 19.06.2025) compared to corresponding period of last year reflecting better taxpayer services and quicker issuance of refunds,' the Central Board of Direct Taxes (CBDT) said. According to the official data, corporate tax (CT) refunds jumped by over 67.3% to ₹ 76,832.08 crore in the first three months (up to June 19) of FY26 from ₹ 45,921.22 crore in corresponding period of FY25. Compared to those refunds under non-corporate tax (NCT), which predominantly comprise of individual taxpayers, was significantly low. Refunds under NCT, earlier called as personal income-tax, saw a single-digit growth 9.44% in April-June (up to June 19) of the current financial year at ₹ 9,551.11 crore as compared to ₹ 8,727.28 crore in the same period of previous fiscal year. Apart from income-tax paid by individual taxpayers, NCT includes taxes paid by Hindu Undivided Families (HUFs), local authorities and artificial juridical persons. Gross corporate tax (CT) for the fiscal year 2025-26 increased by 9.45% to ₹ 2,49,672.09 crore up to June 19 as compared to ₹ 2,28,109.92 crore in the same period of 2024-25. After refunds of ₹ 76,832.08 crore, net CT in FY26 (up to June 19) was ₹ 1,72,840.01 crore, a 5.4% decline compared to ₹ 1,82,188.70 crore net CT in the same period of FY25. Gross NCT collection, however, saw marginally less than 1% growth in FY26 (up to June 19) at ₹ 2,82,262.41 crore as compared to ₹ 2,79,506.59 crore in the corresponding period of FY25. But due to comparatively lower refunds of ₹ 9,551.11 crore in the above-mentioned current period, net NCT saw about 1% increase at ₹ 2,72,711.30 crore compared to ₹ 2,70,779.31 crore in the same period of FY25. Advance tax collections during April 1 to June 19 of FY26 registered a growth of 3.87% at ₹ 1.56 lakh crore, according to the data. While corporate advance tax payments saw a 5.86% increase to ₹ 1,21,604.48 crore during the period, collections from non-corporate taxpayers declined by 2.68% to ₹ 33,928.32 crore. Advance tax is paid in four instalments in the middle of June, September, December, and March of the financial year.
New Indian Express
8 hours ago
- Business
- New Indian Express
Net direct tax collection contracts by 1.4% in first quarter of FY26
NEW DELHI: Net direct tax collection in the first quarter (till 19 June 2025) of FY26 has contracted by 1.39% compared to the corresponding period last year. Even the gross tax collections during the period showed a moderate growth. The provisional figures released by the Central Board of Direct Taxes (CBDT) show that gross direct tax collections in the first quarter stand at Rs 5.45 lakh crore, a 4.86% growth from Rs 5.2 lakh crore in FY 2024-25 (as on June 19, 2024). Refunds have surged by 58.04%, amounting to Rs 86,385.31 crore during the period, significantly higher than Rs 54,660.79 crore in the previous fiscal year's comparable period.
Time of India
12 hours ago
- Business
- Time of India
Reporting of foreign assets, income up in FY24: Finance minister
Finance ministry reported a significant 45% increase in foreign asset and income disclosures (ANI) New Delhi: The finance ministry on Friday said there was a substantial increase in reporting of foreign assets and income, with 2.3 lakh taxpayers disclosing it in their returns in 2023-24, a jump of 45% over the previous year. Amid media reports of an increase in deposits in Swiss bank accounts rising to Swiss Franc 3.5 billion (Rs 37,600 crore), the finance ministry said the amount included funds deposited by companies, banks, and individuals. It asserted that govt has been receiving annual financial information about Indian residents through the automatic exchange of information, including accounts suspected to be involved in financial irregularities. The Central Board of Direct Taxes was undertaking a "systematic review, including verification of returns through multiple modes, including open enquiries, search, and seizure," the department said. CBDT used the information to cross-check with the returns filed and sought a review of the returns of 24,678 taxpayers, of which 5,483 filed belated returns, reporting foreign assets of Rs 29,208 crore and additional foreign income of Rs 1,090 crore. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
India.com
12 hours ago
- Business
- India.com
CBDT Scanner On Swiss Accounts Leading To Higher Tax Declarations In Revised ITRs
New Delhi: The Central Board of Direct Taxes on Friday said that it regularly receives detailed financial data under global tax cooperation frameworks, including the Automatic Exchange of Information (AEOI) with over 100 jurisdictions, including Switzerland, which it uses to verify ITRs filed by Indian taxpayers. As a result, a total of 24,678 taxpayers reviewed their ITRs and 5,483 taxpayers filed their belated return for the A.Y. 2024- 25, reporting foreign assets valued at Rs 29,208 crore and additional income of Rs 1,089.88 crore as foreign income. Suitable action under the extant provision of law is under consideration for non-responsive taxpayers. The initiative has resulted in substantial growth of taxpayers reporting foreign assets and income in ITR for AY 2024-25. A total of 2.31 lakh taxpayers have reported their foreign assets and income in AY 2024-25, witnessing a growth of 45.17 per cent over 1.59 lakh taxpayers in AY 2023-24, the CBDT statement said. Adding further, SMS and emails were sent to various taxpayers with a request to review their ITRs, where foreign assets and income were not reported in the appropriate Schedules of ITR. The statement has been issued following some media reports that have suggested that money deposited in bank accounts of Indian entities in Switzerland has increased. It is reported that the data pertains to different types of funds, including deposits from enterprises, banks and individuals. In this context, it is stated that in order to combat the problem of offshore tax evasion, tax jurisdictions cooperate among themselves and share relevant information about financial assets held by the citizens of other countries in their tax jurisdiction, the statement said. As a part of these mechanisms, India regularly receives information about such foreign accounts and assets from 100+ tax jurisdictions. India also receives information about foreign assets and income being maintained in Switzerland, through different mechanisms of exchange of information. It is further stated that Switzerland has been providing annual financial information about Indian residents since 2018 under the Automatic Exchange of Information (AEOI) framework. The first data transmission to Indian authorities occurred in September 2019, and the exchange has continued regularly since then, covering even those accounts suspected of involvement in financial irregularities. The Central Board of Direct Taxes (CBDT) regularly undertakes a systematic review of data received and identifies taxpayers, whose cases require further verification. Such verification is carried out through different modes, including search and survey actions, open enquiries, the statement added. It is noticed that on account of various awareness initiatives and a system-driven approach, taxpayers are voluntarily declaring their foreign assets and income and are also revisiting their ITRs to offer correct income, the statement added.
