India’s net direct tax collections for the financial year 2025–26 showed a steady increase, rising by 5.12% year-on-year to reach Rs 23,40,406 crore, as per data released by the Central Board of Direct Taxes (CBDT). The gross direct tax collections for the fiscal year amounted to Rs 28,11,936 crore, marking a 4.03% growth compared to the previous year.
The growth in tax collections was driven by higher inflows from both corporate and non-corporate tax segments, indicating stable economic activity and compliance levels. Corporate tax collections notably rose to Rs 13,81,606 crore from Rs 12,72,542 crore in the preceding financial year.
Non-corporate tax collections, encompassing taxes paid by individuals, Hindu Undivided Families (HUFs), firms, and other entities, totaled Rs 13,72,474 crore, slightly lower than the previous year’s Rs 13,73,905 crore. Additionally, collections from Securities Transaction Tax (STT) increased to Rs 57,522 crore.
Refunds issued during the fiscal year saw a marginal decline of 1.09% to Rs 4,71,531 crore, compared to Rs 4,76,732 crore in the previous year. This decrease in refunds contributed to the growth in net tax collections relative to gross collections.
The data reflects a balanced tax structure, with significant contributions from both corporate and individual taxpayers towards overall revenues. Analysts view the consistent growth in net collections as a sign of improved tax buoyancy and efficient tax administration, even amidst global economic uncertainties.
The slight drop in non-corporate tax collections may indicate fluctuations in individual income growth or tax planning strategies, while the uptick in corporate tax collections suggests stable profitability across various sectors. The Income Tax Department shared the data on social media platform X, announcing the release of information on Gross Direct Tax (DT) collections, Refunds, and Net Direct Tax (DT) collections for FY 2025-26 as of March 31, 2026.
