India's direct tax collections have shown steady momentum in the current financial year, reflecting resilient economic activity and improved tax compliance. As per official data released through TINMIS, net direct tax collections for FY 2025-26 (as on December 17, 2025) stood at ₹17.05 lakh crore, registering an 8% growth compared to the same period last year
Gross Collections Touch Nearly ₹20 Lakh Crore
The gross direct tax collection during the period reached ₹20.02 lakh crore, up from ₹19.22 lakh crore in FY 2024-25, reflecting a year-on-year growth of 4.16%
Corporate tax and non-corporate tax together continued to contribute the bulk of revenues, highlighting stable profitability in the corporate sector and sustained income growth among individuals and non-corporate entities.
Refunds Decline, Boosting Net Collections
One of the key reasons for higher net collections was a 13.52% decline in refunds, which fell to ₹2.97 lakh crore in FY 2025-26 from ₹3.43 lakh crore last year
Lower refunds indicate improved accuracy in advance tax payments and return filings, along with faster processing and better matching of reported income.
Corporate and Non-Corporate Tax Performance
- Corporate tax net collections rose to ₹8.17 lakh crore, compared to ₹7.39 lakh crore in the corresponding period of the previous year.
- Non-corporate tax collections, which include taxes paid by individuals, HUFs, firms, LLPs and other entities, increased to ₹8.47 lakh crore, up from ₹7.96 lakh crore
This balanced growth indicates broad-based tax buoyancy rather than reliance on a single segment.
Advance Tax Collections Show Moderate Growth
Advance tax collections for FY 2025-26 (as on December 17, 2025) stood at ₹7.88 lakh crore, compared to ₹7.56 lakh crore last year, reflecting an overall growth of 4.27%
While corporate advance tax grew nearly 8%, non-corporate advance tax saw a marginal decline, suggesting cautious income projections by self-employed taxpayers and small businesses amid global uncertainties.
What This Means for Budget 2026
The steady rise in direct tax collections strengthens the government's fiscal position ahead of Union Budget 2026. Higher net revenues provide additional room for:
- Targeted tax relief
- Increased capital expenditure
- Fiscal consolidation without aggressive borrowing
Tax experts believe that if the trend continues in the remaining quarter, the Centre may comfortably meet or exceed its direct tax targets for FY 2025-26.
Official copy of the notification has been attached
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