India’s net direct tax collection declined by 1.34% year-on-year to Rs 5.63 lakh crore as of July 10, the Income Tax Department said on Friday. The drop is primarily attributed to a sharp surge in tax refunds issued during the period. According to the latest data, net collections stood at Rs 5,62,827 crore, compared to Rs 5,70,483 crore in the same period last year. Tax refunds saw a significant 38.01% rise, reaching Rs 1,01,980 crore; a key factor contributing to the decline in net revenue.