SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up
  1. Home
  2. Stock Market News
  3. Net direct tax collection fall by 48% due to increased refunds

Net direct tax collection fall by 48% due to increased refunds

07 Jun 2011 Evaluate

The net direct tax collection registered a sharp decline of 47.93% in the beginning of the current financial year. This sharp decline in net direct tax collection is mainly because of increased tax refunds by the Income Tax department. This year net direct tax collection was Rs 12, 954 crore compare to Rs. 24,878 crore in same period of 2010-11. However, gross direct tax collection has increased by 37.34% to Rs 50,405 crore, compare to Rs 36,702 crore of 2010-11.

In a statement, the Central Board of Direct Taxes (CBDT) said, the decline in net collection was on account of an increase of 216.74% in tax refund, which stood at Rs 37,451 crore against Rs 11,824 crore last year. According to CBDT statement, more than 40 lakh refunds had been issued in the present financial year and last year around 85 lakh refunds was issued by Income Tax department. Last year, CBDT has provided Rs 11,824 crore tax refund for month of April and May and Rs 73,000 crore in the whole year. The IT department would give an additional Rs 70, 000 - 75,000 crore of refunds this year, making a record of about 1 lakh crore of tax refund in the whole year. 

This elevated tax repayment had disturbed the government’s finance. The Department of Economic Affairs (DEA) has advised that CBDT should moderate refunds. The DEA’s argument was a higher repayment outgo has put pressure on the government to borrow more in the short-term. The sharp increase in refunds and possibility of economic slowdown may lead to a deficit in estimated tax collections.

However, IT department is certain to achieve its target for 2011-12 despite the high refund outgo. Department have to collected around Rs 6.37 lakh crore  to meet the current year net direct tax collection. The budget forecast for direct tax collection for 2011-12 is around Rs 5.33 lakh crore.

Register Now to get our Free Newsletter & much more!
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×