India's direct tax collections have recorded steady growth in the current financial year, reflecting improved compliance and stable economic activity. As per official data for FY 2025-26 (up to February 10, 2026), net direct tax collections stood at Rs 19.43 lakh crore, registering a 9.40% growth compared to the corresponding period last year.
Gross Direct Tax Collection Crosses Rs 22.78 Lakh Crore
The gross direct tax collections for FY 2025-26 reached Rs 22.78 lakh crore, marking a 4.09% increase over the previous financial year's collection of Rs 21.88 lakh crore during the same period.
The collections include:
- Corporate Tax (CT)
- Non-Corporate Tax (NCT) – including taxes paid by individuals, HUFs, firms, AOPs, BOIs and other entities
- Securities Transaction Tax (STT)
- Other Taxes
Corporate tax collections rose to Rs 10.88 lakh crore, while non-corporate tax collections increased to Rs 11.38 lakh crore as of February 10, 2026.
Refunds Decline Nearly 19%
Refunds issued during FY 2025-26 (up to February 10, 2026) stood at Rs 3.34 lakh crore, reflecting a decline of 18.82% compared to Rs 4.11 lakh crore issued during the same period in FY 2024-25.
The lower refund outgo contributed significantly to the stronger growth in net collections.
Net Direct Tax Collection Shows Robust Growth
After adjusting for refunds, the net direct tax collection reached Rs 19.43 lakh crore, compared to Rs 17.76 lakh crore in the corresponding period of FY 2024-25.
Break-up of net collections for FY 2025-26 (up to February 10, 2026):
- Corporate Tax: Rs 8.89 lakh crore
- Non-Corporate Tax: Rs 10.03 lakh crore
- Securities Transaction Tax: Rs 50,279 crore
- Other Taxes: Rs 326 crore
The data indicates a healthy increase in both corporate and personal income tax segments, signalling improved tax compliance and stable earnings across sectors.
What This Means for FY 2025-26
With nearly two months left in the financial year, the current growth trajectory suggests that the government is well-positioned to meet or exceed its direct tax collection targets for FY 2025-26. Sustained corporate profitability, higher advance tax payments and strong TDS collections have contributed to the overall performance.
The steady rise in non-corporate tax collections also highlights robust personal income growth and improved reporting mechanisms.
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