Here’s why taxpayers are getting less refunds; check what CBDT data shows, ETCFO
As many taxpayers have still been waiting for their refunds, the Income Tax (I-T) Department has released the data of tax refunds issued for the financial year 2024-25 and 2025–26 as on January 11, 2026. The data shows that the Central Board of Direct Taxes (CBDT) collected significantly lower refunds in FY 25-26 compared to the Financial Year 2024-25, even though gross tax collections have increased.
Income Tax refund data for 2024-25, 2025-26
As on January 11, 2025, tax refunds for FY 2024–25 stood at Rs 3.75 lakh crore. Tax refunds for FY 2025–26 stood at Rs 3.12 lakh crore, as on January 11, 2026. This shows a 16.92% drop in refunds.While, total gross collections rose from Rs 20.64 lakh crore in FY 2024–25 to Rs 21.50 lakh crore in FY 2025–26, a 4.14% growth. STT collections marginally increased from Rs 44,538 crore in FY 24-25 to Rs 44,867 crore in FY 25-26.
Net collection rise
As a result of a higher gross collection, the gross collection in FY 25-26 jumped by 8.82% to Rs 18.38 lakh crore from Rs 16.89 lakh crore in FY 24-25.
Direct Tax Collections for FY 2025-26 (as on 11.01.2025) (in crore)
| Particulars | FY 2024-25 (as on 11.01.2025) | ||||
| Corporate Tax (CT) | Non-Corporate Tax (NCT) | Securities Transaction Tax (STT) | Other Taxes (OT) | Total | |
| Gross Collection | 9,71,851.07 | 10,45,093.86 | 44,537.76 | 2,868.25 | 20,64,350.94 |
| Refunds | 2,04,111.05 | 1,71,281.34 | 0 | 48.88 | 3,75,441.27 |
| Net Collection | 7,67,740.02 | 8,73,812.52 | 44,537.76 | 2,819.37 | 16,88,909.67 |
Direct Tax Collections for FY 2025-26 (as on 11.01.2026) (in crore)
| FY 2025-26 (as on 11.01.2026) | % Growth | ||||
| Corporate Tax (CT) | Non-Corporate Tax (NCT) | Securities Transaction Tax (STT) | Other Taxes (OT) | Total | |
| 10,46,574.28 | 10,58,046.13 | 44,866.52 | 344.96 | 21,49,831.89 | 4.14% |
| 1,83,535.40 | 1,28,374.44 | 0 | 23.73 | 3,11,933.57 | -16.92% |
| 8,63,038.88 | 9,29,671.69 | 44,866.52 | 321.23 | 18,37,898.32 | 8.82% |
Why did income tax refunds decrease in FY 25-26?
Abhishek Soni, founder and CEO, Tax2Win, says, the recent drop in tax refunds alongside the increase in gross collections shows that the Income Tax Department is getting better at detecting fake deductions and income misreporting.
“With more accurate data checks and a rise in notices issued, taxpayers are now less able to claim false deductions or hide income. This has helped boost genuine tax collections and reduce unnecessary refunds, leading to a healthier and more transparent tax system,” says Soni.
