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India's Net Direct Tax Collections Rise 5% to Rs 23.4 Lakh Crore in FY26

India's net direct tax collections rose 5.12% year-on-year to Rs 23,40,406 crore in FY26. The growth was driven by a notable increase in corporate tax collections, which climbed to Rs 13.81 lakh crore. Non-corporate tax collections saw a slight dip to Rs 13.72 lakh crore, while Securities Transaction Tax rose to Rs 57,522 crore. Refunds declined marginally, boosting net collections relative to gross figures.

Key Points: India's Direct Tax Collections Rise 5% to Rs 23.4 Lakh Crore

  • Net direct tax collections rise 5.12% to Rs 23.4 lakh crore
  • Corporate tax climbs to Rs 13.81 lakh crore
  • Non-corporate tax collections slightly dip to Rs 13.72 lakh crore
  • STT collections increase to Rs 57,522 crore
  • Refunds decline marginally by 1.09% to Rs 4.71 lakh crore
2 min read

India's net direct tax collections rise over 5 pc to Rs 23.4 lakh crore in FY26

India's net direct tax collections rose 5.12% to Rs 23.4 lakh crore in FY26, driven by higher corporate tax and stable economic activity.

"The steady rise in net collections signals improved tax buoyancy and efficient tax administration - Analysts"

New Delhi, May 4

India's net direct tax collections recorded steady growth in the financial year 2025-26, rising 5.12 per cent year-on-year to Rs 23,40,406 crore, according to data released by the Central Board of Direct Taxes on Monday.

Gross direct tax collections for the fiscal stood at Rs 28,11,936 crore, registering a 4.03 per cent increase compared to Rs 27,03,107 crore in FY25.

The rise was supported by higher inflows from both corporate and non-corporate tax segments, reflecting stable economic activity and compliance levels.

Corporate tax collections saw a notable increase, climbing to Rs 13,81,606 crore from Rs 12,72,542 crore in the previous financial year.

Non-corporate tax collections, which include taxes paid by individuals, Hindu Undivided Families (HUFs), firms and other entities, stood at Rs 13,72,474 crore, slightly lower than Rs 13,73,905 crore recorded in FY25.

Meanwhile, collections from Securities Transaction Tax (STT) rose to Rs 57,522 crore.

Refunds issued during the fiscal declined marginally by 1.09 per cent to Rs 4,71,531 crore, compared to Rs 4,76,732 crore in the previous year.

The lower refund outgo helped boost the growth in net tax collections relative to gross collections.

The data points to a balanced tax structure, with both corporate and individual taxpayers contributing significantly to overall revenues.

Analysts said the steady rise in net collections signals improved tax buoyancy and efficient tax administration, even amid uncertain global economic conditions.

The slight dip in non-corporate tax collections may reflect variations in individual income growth or tax planning trends, while the increase in corporate tax collections suggests stable profitability across sectors.

Meanwhile, announcing the data on social media platform X, Income Tax Department said that "data on Gross Direct Tax (DT) collections, Refunds and Net Direct Tax (DT) collections for FY 2025-26 as on 31.03.2026 has been released."

- IANS

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Reader Comments

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James A
Impressive growth given the global headwinds. Corporate tax rising even more than individual tax suggests businesses are doing well. But I wonder how much of this is driven by inflation pushing people into higher tax brackets (bracket creep). Would be interesting to see the volume of new taxpayers vs just higher payments from existing ones.
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Priya S
Non-corporate tax collections being slightly lower than last year is a red flag for me. Salaried people are already squeezed with TDS deductions, and maybe many are now investing more in tax-saving instruments or even switching to lower-tax regimes. Government should consider simplifying the tax code further and maybe raising the basic exemption limit—small taxpayers need relief too. Vaise bhi, logon ke haath mein paisa rahega to spending badhegi, aur economy growth hoga.
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Michael C
The STT collection jump to Rs 57,522 crore is telling—India’s stock market frenzy is definitely contributing to exchequer. But STT is not really a tax on income, it's a transaction cost that hits small traders hard. While I appreciate the buoyancy, I hope policymakers remember that not everyone can afford to be in F&O. More transparency on where all this money goes would be nice.
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Vikram M
Sab theek hai lekin jab tak income tax rates actually bring down burden for middle class, ye numbers just show richer ho rahe hain. Corporate tax mein 9% growth, but personal tax flat? Mathematically, it means companies are earning more but individuals are not benefiting proportionally. Maybe it's time for a new tax regime that truly benefits the common man aur chhote businesses. Karke dekhte hain kya hota hai.

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