Advance tax collection in FY26 increased by 3.87% to ₹ 1.56 lakh crore, Net Direct Tax Collection reduced by 1.39%

The fresh account of the government’s earnings has come, and it is presenting some mixed but mostly good pictures. Statistics show that the country’s economy is on track and people are paying tax honestly, but there is a figure that can surprise a little. Let us understand this whole mathematics in easy language.

First good news: a strong boom in government’s total earnings
Good news first. Government’s total direct tax earnings (ie total income without any deduction) compared to last year 23.33% There has been a great increase in. This shows that economic activities in the country are sharp.

Second good news: companies maintain trust in government
‘Advance Tax’, prematurely deposited by companies and employed people, is also close 4% Has increased. When companies deposit more tax in advance, it means that they are expecting good profits in future. This is a very positive sign for the economy.

Now the screw that changed the whole game: ‘refund’
Then the net tax collection (ie after cutting the refund, the remaining in the remaining earning) 1.39% Why is the decline showing?

The answer is- Tax refund!
This time the government has almost to taxpayers compared to last year Double (96% more) Money is returned as refund. This means that the tax department is now working much faster than ever and people’s money is returning them quickly.

Simple Mathematics:
Total Earnings – Refund Refund = Pure Earning (NET)

Since this time the government has refunded a lot of money, despite increasing the total earnings, the net earnings look a little less.