India’s net direct tax collections declined marginally in the first quarter of FY 2025-26, reflecting a slowdown in advance tax inflows and muted corporate earnings. According to official figures released by the government, net direct tax receipts stood at Rs. 4.59 lakh crore as of June 19, 2025—representing a 1.39% year-on-year decrease. While gross collections posted modest growth, robust refund issuances and weaker corporate tax performance weighed on the net figures.