India’s direct tax collections for FY 2025–26 recorded steady growth, with net collections rising 5.12% year-on-year to ₹23,40,406 crore as of March 31, 2026, according to data released by the Central Board of Direct Taxes (CBDT). The figures reflect sustained revenue momentum despite moderation in refund outflows.

Gross direct tax collections stood at ₹28,11,936 crore, marking a 4.03% increase compared to ₹27,03,107 crore in FY25. The growth was driven by higher inflows from both corporate tax and non-corporate tax segments, indicating stable compliance trends and economic activity.

Corporate tax collections rose to ₹13,81,606 crore from ₹12,72,542 crore in the previous fiscal. Meanwhile, non-corporate tax collections — which include taxes paid by individuals, HUFs, firms, and other entities—stood at ₹13,72,474 crore, marginally lower than ₹13,73,905 crore recorded last year. Securities Transaction Tax (STT) collections increased to ₹57,522 crore, reflecting continued activity in equity markets.

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Refunds issued during the fiscal saw a slight decline of 1.09% to ₹4,71,531 crore, compared to ₹4,76,732 crore in FY25. Lower refund outgo contributed to the higher growth in net collections relative to gross collections.

The data suggests a balanced tax composition, with both corporate and individual taxpayers contributing significantly to the exchequer. Analysts note that the steady rise in net collections points to improved tax buoyancy and effective administration, even as global economic conditions remain uncertain.

The marginal dip in non-corporate tax collections could reflect variations in individual income growth or tax planning behaviour, while the rise in corporate tax indicates stable profitability across sectors.

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Overall, the FY26 direct tax performance underscores the resilience of India’s tax system, supported by digitisation, enhanced compliance measures, and expanding formalisation of the economy. The provisional figures also provide an early indication of fiscal strength as the government continues to balance revenue generation with growth priorities.

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Published on: May 4, 2026 8:01 PM IST