Modi Govt’s Tax Collections Jump 6%, Refunds Fall Sharply In FY2025; Corporate Tax Up, Non-Corporate Refunds Take A Hit

New Delhi: India's direct tax collection saw a solid rise in the current financial year, with net collections increasing 6.33 percent percent to over Rs 11.89 lakh crore as of October 12, 2025. This growth came largely on the back of higher corporate tax receipts and a drop in refunds, according to data released by the Income Tax Department.

Corporate Taxes Push Collections Higher

Between April 1 and October 12, net corporate tax collection stood at Rs 5.02 lakh crore, slightly up from Rs 4.92 lakh crore in the same period last year. Non-corporate tax collections rose more sharply to around Rs 6.56 lakh crore, compared to Rs 5.94 lakh crore in the previous fiscal.

Refund Issuance Sees a Sharp Drop

The total refunds issued till October 12 this year stood at Rs 2.03 lakh crore, marking a significant 15.98 percent decline from Rs 2.41 lakh crore last year. This led to stronger net collection figures despite only a moderate increase in gross tax receipts, which rose 2.36 percent year-on-year to Rs 13.92 lakh crore.

Individual Tax Contributions Rise Too

Revenue from individual income tax, including Securities Transaction Tax (STT), also saw growth. STT collections were recorded at Rs 30,878 crore, slightly higher than Rs 30,630 crore last year. The total net collection, which includes both personal and corporate income taxes, crossed Rs 11.89 lakh crore, up from Rs 11.18 lakh crore a year ago.

Non-Corporate Refunds Fall Sharply

Interestingly, while corporate tax refunds rose from Rs 1.20 lakh crore to Rs 1.40 lakh crore, refunds to non-corporate taxpayers were slashed nearly by half, from Rs 1.20 lakh crore to Rs 62,359 crore. This has raised questions about refund delays and uneven processing.

Govt Cites Fraud Checks for Refund Delays

The Income Tax Department has said that refund delays this year are due to stricter verification aimed at preventing fraudulent claims. Genuine taxpayers with accurate filings, however, will receive timely refunds, it assured.