The Central government’s net direct tax collections for the current financial year (2025-26) have reached Rs 18.37 lakh crore from April 1 to January 11, as per data from the Income Tax Department. This marks an 8.82% increase compared to the same period last year.
Net corporate tax collections as of January 11 amounted to Rs 8.63 lakh crore, showing a substantial 12.41% growth over the previous year’s corresponding period. Additionally, net non-corporate tax collections, inclusive of personal income tax and securities transaction tax, totaled Rs 9.29 lakh crore, reflecting a 6.39% rise from the previous year.
The rise in tax collections has been impacted by the tax exemptions introduced in the 2025-26 Budget, particularly benefiting the middle class. Individuals earning up to Rs 12 lakh annually are now exempt from paying taxes, with a higher limit of Rs 12.75 lakh for salaried taxpayers due to a standard deduction of Rs 75,000.
The tax reforms were designed to reduce the tax burden on the middle class, thereby increasing disposable income and stimulating household consumption, savings, and investments to drive economic growth. Moreover, the limits for Tax Deducted at Source (TDS) have been raised for various categories, such as senior citizens’ interest income to Rs 1 lakh from Rs 50,000 and annual rent to Rs 6 lakh from Rs 2.40 lakh.
Refunds for the period from April 1 to January 11 amounted to Rs 3.11 lakh crore, indicating a 16.91% decrease compared to the previous fiscal year. In the corresponding period of the previous year, refunds totaled Rs 3.75 lakh crore. The gross direct tax collection for the current fiscal year has reached Rs 21.49 lakh crore, showing a 4.14% increase over the same period last year.
