India’s FY26 Direct Tax Collections Rise 8%, Reaching ₹17.04 Lakh Crore

As of December 17, 2025, India's net direct tax collections for the fiscal year 2025-26 have risen by 8% year-on-year, amounting to ₹17.04 lakh crore. This growth reflects the government's ongoing efforts to enhance tax compliance and broaden the tax base. 

Breakdown of Direct Tax Collections 

The gross direct tax collections for FY26 stand at ₹20,01,794.23 crore, marking a 4.16% increase from the previous fiscal year.  

Corporate Tax (CT) collections reached ₹9,94,577.20 crore, while Non-Corporate Tax (NCT) collections, which include taxes paid by individuals, HUFs, firms, and other entities, amounted to ₹9,66,683.69 crore.  

Securities Transaction Tax (STT) and other taxes contributed ₹40,194.77 crore and ₹338.57 crore, respectively. 

Advance Tax Collections 

Advance tax collections, a significant component of direct taxes, have also shown growth. As of December 17, 2025, advance tax collections have increased by 4.3% year-on-year, totalling ₹7,88,387.92 crore.  

Corporate Tax contributed ₹6,07,299.99 crore, reflecting a 7.98% growth, while Non-Corporate Tax collections decreased by 6.49% to ₹1,81,087.93 crore. 

Read More: Income Tax Slab Changes in 2025: How Much Can You Save Under the New Tax Regime! 

Refunds and Net Collections 

Refunds issued during this period amounted to ₹2,97,069.02 crore, representing a decrease of 13.52% compared to the previous fiscal year. Consequently, the net direct tax collections for FY26 stand at ₹17,04,725.21 crore, an 8% increase from the previous year. 

Conclusion 

The fiscal year 2025-26 has seen a notable increase in direct tax collections, with both gross and net figures showing significant growth. The rise in advance tax collections and the reduction in refunds have contributed to this positive trend, reflecting the government's efforts in tax administration and compliance. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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.