The government's net direct tax collection dropped by 17% in the first quarter of 2011 to Rs 57,268 crore against Rs 68,675 crore in the same period last fiscal. The poor performance has been attributed to the 200% growth in tax refunds.

However, the gross direct tax collection during the April-June 2011 quarter has shown an increase of 24% at Rs 1,04,136 crore as against Rs 84,041 crore in the same period the previous year. Gross corporate tax collections were up 23% at Rs 68,223 crore as against Rs 55,244 crore last year. Personal income tax was up by 25% at Rs 35,859 crore against Rs 28,772 crore last year.

The refunds were to the tune of Rs 46,868 crore in the first three months of the current year as against Rs 15,366 crore in the first quarter last fiscal, an increase of 205%.

But as compared to the first two months of April and May, the tax collection has shown some improvement. The net collection had plunged by 48% to Rs 12,954 crore due to clearance of at least 40 lakh refunds amounting to Rs 37,451 crore in the first two months. The collection during the same period in the previous year was Rs 24,878 crore.

Despite high refunds, the CBDT claimed it will achieve the budget estimates of Rs 5,32,651 crore in 2011-12. Last year it had exceeded the revised target of Rs 4,46,000 crore.