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India's Net Direct Tax Collection Rises 8.8% in FY26, Corporate Tax Up 12.4%

India's net direct tax collections for FY26 reached Rs 18.37 lakh crore by January 11, marking an 8.82% year-on-year increase. Corporate tax collections showed strong growth of 12.41%, while personal income tax growth was more modest at 6.39% due to new middle-class tax concessions. The government's revised tax structure exempts incomes up to Rs 12 lakh annually, aiming to boost household consumption and savings. Refunds issued during this period fell significantly by 16.91% compared to the previous fiscal year.

Key Points: India's FY26 Direct Tax Collection Grows 8.8%, Refunds Down

  • Net direct tax up 8.82%
  • Corporate tax surges 12.41%
  • Personal tax growth at 6.39%
  • Refunds down by 16.91%
2 min read

Net direct tax collection rises by 8.8 per cent in FY26

India's net direct tax collection rises to Rs 18.37 lakh crore, with corporate tax up 12.41%. Middle-class tax concessions impact growth rate.

"The lower increase reflects the tax concessions announced in the Budget for 2025-26 for the middle class - Income Tax Department"

New Delhi, Jan 12

The Central government's net direct tax collections touched Rs 18.37 lakh crore between April 1 and January 11 of the current financial year, according to data released by the Income Tax Department on Monday.

The figure represents an 8.82 per cent increase over the next direct tax collections in the same period of the previous year.

Net corporate tax collections till January 11 stood at Rs 8.63 lakh crore, which represents a robust 12.41 per cent over the same period of the previous year.

Net non-corporate tax collections, which include personal income tax and securities transaction tax, stood at Rs 9.29 lakh crore, which translates toa 6.39 per cent rise over the corresponding figure of the previous year.

The lower increase reflects the tax concessions announced in the Budget for 205-26 for the middle class, which exempted all those earning an income of Rs 12 lakh a year from paying tax. This limit works out to Rs 12.75 lakh for salaried taxpayers, due to the standard deduction of Rs 75,000.

The new structure was aimed to substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment to boost economic growth.

The limits for Tax Deducted at Source (TDS) have also been raised for various sections, such as on interest for senior citizens to Rs 1 lakh from Rs 50,000 and on rent to Rs 6 lakh annually from Rs 2.40 lakh.

The data released on Monday also shows that refunds stood at Rs 3.11 lakh crore between April 1 and January 11. This is lower by 16.91 per cent as compared to the same period of the last fiscal. Between April-January 11 FY25, refunds stood at Rs 3.75 lakh crore.

The gross direct tax collection for the current financial year so far stands at Rs 21.49 lakh crore, which is 4.14 per cent higher than the corresponding figure over the same period of the previous year.

- IANS

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Reader Comments

P
Priya S
As a salaried professional, I'm really happy about the higher exemption limit. That extra money in hand makes a real difference with rising costs. More savings for my family's future. 👍
R
Rohit P
The increase in non-corporate tax is lower, which is expected due to the relief for the middle class. But I have a respectful criticism: the government should also focus on widening the tax net. So many in the informal sector still don't pay taxes. More taxpayers = more revenue for development.
S
Sarah B
The raised TDS limit for senior citizens on interest is a very thoughtful move. My parents were happy to hear this. It provides some relief for retirees managing their fixed deposits. Every little bit helps.
V
Vikram M
Refunds are lower by almost 17%? That's interesting. Maybe the new system is processing returns more accurately upfront. Faster refunds were always a pain point. If this trend continues, it's a good sign of efficiency.
K
Kavya N
The logic is sound - put more money in the hands of the middle class to boost consumption. But with inflation, how much of that extra income is actually saved or spent on discretionary items? The real test is whether this translates to higher GDP growth.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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