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Informist, Monday, Nov. 17, 2025

 

NEW DELHI – The government is hopeful of meeting the direct tax collection target for 2025-26 (Apr-Mar) despite the slower-than-budgeted pace of collections so far, Central Board of Direct Taxes Chairman Ravi Agrawal said Monday. "Direct tax mop-up is growing at 6.99% as compared to last year, which is an encouraging trend and we hope that by the end of the year, we would be able to meet the targets," Agrawal said.

 

The government's net direct tax collections during Apr. 1-Nov. 10 were up 7.0% on year at INR 12.925 trillion, buoyed by an 8.7% increase in non-corporate tax collections and a sharp fall in refunds issued, data released Tuesday by the finance ministry showed. Net direct tax collections have so far accounted for 51.3% of the Budget target of INR 25.20 trillion for the current financial year. The government has issued refunds worth INR 2.425 trillion this year as of Nov. 10, down 17.7% from a year ago.

 

The government has projected total tax collections in FY26 at INR 42.702 trillion, up 10.8% on year. Of this, it aims to collect INR 25.20 trillion as direct taxes, 12.7% higher than in FY25. 

 

Agrawal also said two instalments of advance tax were still left for the current fiscal, and the due date for filing audit returns for FY25 had been extended. "We hope that by Dec. 10, we should be able to catch up," he told reporters at the inauguration of taxpayers' lounge at the India International Trade Fair. 

 

"We are also taking steps of AI and wherever we are finding gaps, we are connecting with the taxpayers through emails and through prompts," he added. "The provisions enable the taxpayer to file updated returns wherever there is a gap, and there is an encouraging response on part of the taxpayers." 

 

On the new Income Tax Act, 2025, which will be rolled out on Apr. 1, Agrawal said the government was working on the new rules and forms and these were expected to be notified by January 2026. "So we are working towards putting this in place by January so that taxpayers have sufficient time to adapt their processes within their system. Intent is how to make it simple for taxpayers because form is the first interface through which compliance is there," Agrawal said.

 

First announced in the full Budget for FY25, the new Act was put in place to simplify the Income Tax Act, 1961, to make it easier for taxpayers to calculate their tax dues and file returns.  End

 

Reported by Priyasmita Dutta

Edited by Avishek Dutta

 

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