India’s net direct tax collections increased by 13.21% year-on-year to ₹13.38 lakh crore as of October 14, 2026, according to the latest data released by the Income Tax Department. The growth comes even as tax refunds recorded a sharper increase during the same period.
The department's data for FY 2026-27 shows that gross direct tax collections reached ₹16.03 lakh crore, compared with ₹13.95 lakh crore in the corresponding period of the previous financial year. This represents a growth of 14.89%.
Total tax refunds during the period stood at ₹2.65 lakh crore, up 24.22% from ₹2.13 lakh crore a year earlier. After adjusting for refunds, net direct tax collections amounted to ₹13,37,866.98 crore, against ₹11,81,786.98 crore as of October 14, 2025.
The figures have been compiled from the TINMIS system and published on the Income Tax Department’s official website.
Direct Tax Collection: FY 2026-27 vs FY 2025-26
The following table compares gross collections, refunds and net collections for the corresponding periods of the two financial years.
| Particulars | FY 2025-26 (₹ crore) | FY 2026-27 (₹ crore) | Growth |
|---|---|---|---|
| Gross direct tax collection | 13,95,278.39 | 16,03,066.12 | 14.89% |
| Total refunds | 2,13,491.41 | 2,65,199.14 | 24.22% |
| Net direct tax collection | 11,81,786.98 | 13,37,866.98 | 13.21% |
The data indicates that gross collections continued to rise, while the higher outflow towards refunds moderated the growth in net tax receipts.
Corporate Tax Collections Increase to ₹5.99 Lakh Crore
Corporate tax remained a significant contributor to direct tax revenue during the period. Net corporate tax collections rose to ₹5,99,062.48 crore as of October 14, 2026, compared with ₹4,96,798.62 crore in the corresponding period of FY 2025-26.
This translates into an increase of approximately 20.59% year-on-year.
Gross corporate tax collections stood at ₹7,52,961.56 crore, against ₹6,43,721.45 crore a year earlier. Corporate tax refunds increased to ₹1,53,899.08 crore from ₹1,46,922.83 crore.
The increase in net corporate tax collections indicates stronger receipts from this segment during the first part of the financial year.
Non-Corporate Tax Collections Reach ₹6.92 Lakh Crore
Net non-corporate tax collections increased to ₹6,91,965.71 crore, compared with ₹6,53,804.16 crore in the corresponding period of the previous financial year. This represents a year-on-year increase of approximately 5.84%.
The non-corporate tax category includes taxes paid by individuals, Hindu Undivided Families (HUFs), firms, Associations of Persons (AoPs), Bodies of Individuals (BoIs), local authorities and artificial juridical persons.
Gross collections under this category stood at ₹8,03,245.26 crore, up from ₹7,20,353.91 crore in the previous year. However, refunds also increased substantially, reaching ₹1,11,279.55 crore against ₹66,549.75 crore a year earlier.
The increase in refunds partly explains why net non-corporate tax collections grew at a slower pace than gross collections.
Securities Transaction Tax Collections Rise 51.58%
Securities Transaction Tax (STT) recorded one of the strongest increases among the major direct tax components.
Net STT collections stood at ₹46,840.43 crore as of October 14, 2026, compared with ₹30,901.81 crore in the corresponding period of FY 2025-26. This represents an increase of approximately 51.58%.
The data also shows that gross STT collections were ₹46,840.43 crore during the current financial year. No STT refunds were recorded in the reported figures.
The sharp rise in STT collections reflects higher revenue from transactions in securities, although the collection data alone does not establish the specific factors behind the increase.
Tax Refunds Rise 24.22% During the Period
Total direct tax refunds increased to ₹2,65,199.14 crore in FY 2026-27 up to October 14, compared with ₹2,13,491.41 crore during the corresponding period of the previous year.
This represents a year-on-year increase of 24.22%, exceeding the 14.89% growth recorded in gross direct tax collections.
Corporate tax refunds amounted to ₹1,53,899.08 crore, while non-corporate tax refunds stood at ₹1,11,279.55 crore. Refunds under other taxes were ₹20.51 crore.
The rise in refunds is an important factor in understanding the difference between gross and net direct tax collections. Although gross revenue increased by nearly 15%, net collections grew by 13.21% after accounting for the higher refund outflow.
What the Latest Direct Tax Data Indicates
The latest figures point to continued growth in India's direct tax revenue during the opening months of FY 2026-27. Gross collections have crossed ₹16 lakh crore, while net collections have reached approximately ₹13.38 lakh crore.
Corporate tax and STT recorded relatively strong growth, whereas non-corporate tax collections increased at a more moderate pace. At the same time, the rise in refunds has influenced the overall growth in net receipts.
The figures provide an interim picture of tax revenue performance and do not, by themselves, indicate whether the government's full-year direct tax collection target will be achieved. Collections over the remaining months of FY 2026-27 will be important in determining the final outcome.
CAclubindia
