Net direct tax collections reach ₹17.04 trillion till Dec 17 in FY26, up 8%

Net direct tax collections for FY 2025-26 rose 8 per cent to ₹17.04 trillion as on December 17, led by higher corporate tax and lower refunds

India’s net direct tax collections for the financial year 2025-26 have reached ₹17.04 trillion as on December 17, marking an 8 per cent increase compared to ₹15.78 trillion collected in the same period last year.

 

Data released by the Income Tax Department on Friday showed that gross collections increased to ₹20.01 trillion, up from ₹19.22 trillion in FY 2024-25, showing a growth of 4.16 per cent.  India has fixed its direct tax revenue goal at ₹25.2 trillion for the financial year ending March 31, 2026. The government aims to collect ₹78,000 crore from STT in FY26.

 

In February, the government lowered personal income tax rates to boost consumer demand, a step it said would lead to a revenue loss of around ₹1 trillion.

 

Corporate tax growth leads the way

 

Corporate tax collections have seen a significant rise, reaching ₹8.17 trillion, up from ₹7.39 trillion in FY 2024-25. This reflects a growth of 10.7 per cent. Non-corporate tax collections, which include taxes paid by individuals, HUFs, firms and other entities, also increased to ₹8.46 trillion from ₹7.96 trillion last year.

 

While gross collections grew, refunds issued decreased to ₹2.97 trillion from ₹3.43 trillion in the previous year, a drop of 13.5 per cent. This contributed to the higher net collection figure. 

Advance tax collections up to December 17 stood at ₹7.88 trillion, showing a 4.27 per cent increase over last year’s ₹7.56 trillion. Corporate advance tax rose by 7.98 per cent, while non-corporate advance tax fell by 6.49 per cent.