The Center has extended the tenure of CBDT Chairman Ravi Agrawal by six months

The Center on Tuesday extended the tenure of Ravi Agrawal as chairman of the Central Board of Direct Taxes (CBDT) by six months, till December 31, 2026, ensuring continuity in the apex direct tax policy-making body.

The Appointments Committee of the Cabinet approved Agrawal’s re-appointment as CBDT chairman on contract basis after his retirement on June 30, 2026, as per an order issued by the Department of Personnel and Training (DoPT).

The extension will be effective July 1, 2026 through December 31, 2026 or until terminated, whichever occurs first.

The extension comes after direct tax collections have seen a healthy start to the current fiscal, reflecting the company’s resilient profitability and stable economic activity.

Data released by the Income Tax Department on Thursday showed that net collection of direct taxes remained at ₹5.21 trillion as of June 17, up 14.64% from a year ago. Gross collection of direct taxes increased by 12.46% year-on-year. ₹6.10 trillion, while replacements grew by a meager 1.19% to ₹89,026 million crowns.

Corporate tax remained the main driver of growth. Net collection of corporate taxes increased by 22.48% year-on-year. ₹2.08 trillion, significantly exceeding non-business tax collections, which grew by 8.41% to ₹2.93 trillion.

Another significant contributor was the Securities Transaction Tax (STT), whose collections increased by 44.9% to ₹18,856 crore, reflecting sustained activity in stock markets.

Tax advances, which are widely considered an early indicator of business confidence and profitability, also saw healthy growth. Total advance tax collections for FY27 increased by 15.30% to ₹1.78 trillion, with advance corporate income tax rising 16.01% to ₹1.40 trillion.

A strong start to direct tax collections is expected to support the Centre’s fiscal consolidation drive. In the Union Budget for FY27, the government targeted a fiscal deficit of 4.3% of GDP, lower than the revised estimate of 4.8% for FY26.

Healthy tax revenues could provide additional room to maintain public spending, especially capital, while keeping the fiscal deficit on track.

Sales performance is also linked to an improving macroeconomic backdrop.

Earlier this month, the World Bank raised India’s fiscal year 27 in its June 2026 Global Economic Prospects report. growth forecast to 6.6% from 6.5% forecast in January, noting that the country will remain among the world’s fastest-growing major economies despite easing from an estimated 7.7% in FY26.

Separately, Goldman Sachs revised its forecast for India’s current account deficit to 1.3% of GDP, reflecting improving conditions in the external sector.