India's direct tax collections have continued their upward momentum, reflecting steady corporate performance and improved compliance levels. According to data released by the Central Board of Direct Taxes (CBDT), the net direct tax collections for FY 2025-26 stood at Rs 11.89 lakh crore as of October 12, 2025, marking a 6.33% increase compared to Rs 11.18 lakh crore in the same period last year.
The gross collections (before refunds) reached Rs 13.92 lakh crore, registering a 2.36% year-on-year growth. The marginal rise in gross receipts was driven by a consistent uptick in corporate tax (Rs 6.43 lakh crore) and non-corporate tax (Rs 7.18 lakh crore) components, alongside Rs 30,878 crore from Securities Transaction Tax (STT).
However, a key factor driving the stronger net performance this year was a notable reduction in tax refunds, which fell 15.98% to Rs 2.03 lakh crore from Rs 2.42 lakh crore in the previous fiscal period.
The data underscores the resilience of India's tax base despite global headwinds. With corporate earnings showing moderate recovery and personal income tax collections maintaining healthy growth, the government's fiscal math for FY 2025-26 remains on track.
Officials suggest that the improved compliance through the e-filing ecosystem, ongoing use of data analytics, and faceless assessment initiatives have contributed to this steady increase in collections.
The Finance Ministry is confident that the direct tax revenue target for FY 2025-26 will be comfortably met, reinforcing fiscal stability ahead of the Union Budget 2026.
Official copy of the notification has been attached
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