India’s Direct Tax Collections Rise 6.33% to ₹11.89 Lakh Crore

The Central Board of Direct Taxes (CBDT) on Monday reported that India’s net direct tax collections for the ongoing fiscal year 2025–26 have reached ₹11.89 lakh crore as of October 12, reflecting a 6.33% rise compared to ₹11.18 lakh crore collected during the same period last year. The increase highlights improved efficiency in tax administration and steady momentum in corporate and individual tax receipts.

Collection Growth and Trends

Gross direct tax collections between April 1 and October 12 stood at ₹13.92 lakh crore, registering a modest 2.36% increase from ₹13.6 lakh crore in the year-ago period. The primary boost to net collections stems from a decline in refunds, which fell nearly 16% year-on-year to ₹2.03 lakh crore, compared to ₹2.42 lakh crore during the corresponding period of FY25.

The reduction in refunds points to faster assessment cycles and enhanced compliance measures, indicating better efficiency within the tax system.

Fiscal Outlook and Targets

For FY26, the central government has set an ambitious direct tax collection target of ₹25.2 lakh crore, according to the Union Budget estimates. With the current trajectory of collections, the government remains on track to meet its fiscal target, backed by healthy corporate profitability and sustained growth in personal income tax receipts.

Read More: Tax Audit Due Date 2025: Deadline Extension Status Amid ITR Portal Glitches and Chambers’ Request!

Conclusion

The rise in direct tax collections reflects strengthening tax compliance and administrative reforms. With steady inflows and reduced refunds, India’s fiscal outlook remains robust, supporting government expenditure and growth initiatives through the remainder of FY26.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.