India, June 22 -- India's net direct tax revenue fell 1.4% to Rs.4.59 lakh crore in the first quarter of 2025-26 (till June19) despite gross collections growing little less than 5% to over Rs.5.45 lakh crore, government data released on Saturday showed.

The decline was driven by a sharp 58% jump in refunds to Rs.86,385.31 crore during April-June 19, compared with Rs.54,660.79 crore in the same period last year, primarily due to higher corporate refunds.

"Refunds have increased by 58.04% compared to the corresponding period of last year, reflecting better taxpayer services and quicker issuance of refunds," the Central Board of Direct Taxes said.

Tax experts attributed the dip in net collections to transitional factors, including revised...