India's direct tax collections recorded a steady growth in the financial year 2025-26, reflecting resilience in economic activity and improved tax compliance. As per provisional data released by the Central Board of Direct Taxes, net direct tax collections stood at Rs 23.40 lakh crore as of March 31, 2026, marking a 5.12% increase compared to the previous financial year.
Gross Collections Show Moderate Growth
The gross direct tax collections for FY 2025-26 reached Rs 28.11 lakh crore, registering a 4.03% year-on-year growth from Rs 27.03 lakh crore in FY 2024-25. The growth was driven by stable inflows from both corporate and non-corporate tax segments.
- Corporation Tax (CT): Rs 13.81 lakh crore
- Non-Corporate Tax (NCT): Rs 13.72 lakh crore
- Securities Transaction Tax (STT): Rs 57,522 crore
- Other Taxes: Rs 334 crore
Non-corporate taxes, which include income tax paid by individuals, HUFs, firms, and other entities, continued to contribute significantly to overall collections.
Refunds Decline Marginally
Tax refunds issued during FY 2025-26 saw a slight decline of 1.09%, amounting to Rs 4.71 lakh crore compared to Rs 4.76 lakh crore in the previous year. The marginal dip in refunds has contributed to higher net tax realization.
Net Collections Cross Rs 23 Lakh Crore
After adjusting for refunds, net direct tax collections rose to Rs 23.40 lakh crore, up from Rs 22.26 lakh crore in FY 2024-25. The growth reflects improved tax administration, better compliance, and stable corporate earnings.
- Net Corporation Tax: Rs 10.99 lakh crore
- Net Non-Corporate Tax: Rs 11.83 lakh crore
- Net STT: Rs 57,522 crore
- Other Taxes: Rs 312 crore
Key Takeaways
- Direct tax collections maintained steady growth despite global uncertainties
- Non-corporate tax contribution remains robust
- Slight decline in refunds boosted net revenue
- Overall tax buoyancy signals continued economic stability
Outlook
The consistent rise in direct tax collections highlights strengthening fiscal health and improved taxpayer compliance in India. With ongoing digitization and policy reforms, tax collections are expected to remain on a positive trajectory in the coming financial year.
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