Net direct tax haul jumps 6% to ₹11.89 trillion on personal tax filings

Higher personal income tax inflows and expanding non-corporate taxpayer base drive the rise in direct tax collections, reflecting robust domestic demand and compliance

India’s net direct tax collections for 2025-26 rose 6.33 per cent year-on-year to ₹11.89 trillion as of October 12, driven by higher inflows from non-corporate taxpayers, according to the latest data from the Central Board of Direct Taxes.

 

Net corporate tax collections increased 2.06 per cent to ₹5.02 trillion, while non-corporate tax — which includes payments by individuals, Hindu Undivided Families (HUFs), firms, and other entities — jumped 10.49 per cent to ₹6.56 trillion.

 

Collections from the securities transaction tax rose 0.81 per cent to ₹30,878.46 crore, whereas receipts under other minor taxes contracted sharply by 86.36 per cent to ₹293.68 crore.

 

 

Gross direct tax collections grew 2.36 per cent to ₹13.92 trillion during the period, compared with ₹13.6 trillion in the same period last year. Refunds declined 15.98 per cent to ₹2.03 trillion, suggesting a moderation in outgos compared with the previous year’s aggressive refund pace.

 

Corporate refunds stood at ₹1.41 trillion, while refunds to non-corporate taxpayers fell to ₹62,359.29 crore. According to tax experts, the slowdown in corporate tax growth reflects weaker profit trends in select sectors and higher depreciation claims linked to ongoing capital expenditure.

 

Amid a global slowdown, Abhishek A Rastogi, founder of Rastogi Chambers, said the steady rise in net direct tax collections, particularly from non-corporate taxpayers, highlights India’s expanding tax base and the growing depth of economic activity. “The surge in contributions from individuals, firms, and professionals signifies that growth is no longer confined to large corporates but is spreading across sectors, reflecting stronger domestic demand and income momentum,” he observed.

 

Rastogi further added, “The trend also points to greater formalisation and improved digital compliance, which have strengthened the transparency and efficiency of the tax system. Overall, the buoyancy in tax revenues highlights the robustness of India’s economic fundamentals and its steady fiscal consolidation path.”

 

However, Himanshu Parekh, partner with KPMG, pointed out that the growth of gross direct tax collection at 2.36 per cent appears subdued and has not kept pace with the economy’s strong gross domestic product growth this year. “To maintain fiscal discipline, appropriate measures will have to be undertaken by the government to ensure higher growth in taxes for the rest of the year,” he said.  According to Rohinton Sidhwa, partner, Deloitte India, refunds appear to have dipped owing to better algorithms implemented at the time of processing returns. “This raises an interesting point as to what the changes are and what impact they are going to have on taxpayers,” Sidhwa said.