India’s Net Direct Tax Collections Reach ₹23.40 Trillion in FY26, Up 5%

India’s net direct tax collections stood at ₹23.40 trillion in FY2025-26, registering a 5.12% rise from ₹22.26 trillion in the previous year, as per PTI reports.  

Data released by the Central Board of Direct Taxes shows that the pace of growth has moderated compared to earlier periods, settling into a mid-single-digit range. 

Shortfall Against Revised Estimates 

The final collections remained below the revised estimate of ₹24.21 trillion for the fiscal year ending March 2026. The revised projections had assumed ₹11.09 trillion from corporate taxes and ₹13.12 trillion from personal income tax, including Securities Transaction Tax (STT).  

Actual collections did not meet these projections. 

Composition of Tax Revenue 

Corporate tax collections were recorded at ₹10.99 trillion during the year. Personal income tax, including STT, contributed about ₹12.41 trillion.  

Personal taxes continued to account for a larger share of total direct tax receipts, showing steady inflows from individual taxpayers and market-linked transactions. 

Gross Collections and Refunds 

Gross direct tax collections rose to ₹28.12 trillion in FY26, up 4.03% from ₹27.03 trillion in FY25. Refunds issued during the year declined by 1.09% to ₹4.71 trillion, compared to ₹4.76 trillion in the previous fiscal.  

The lower refund outgo supported net collections despite the modest growth in gross receipts. 

Trend in Revenue Growth 

The data indicates a gradual shift towards stable but slower growth in tax revenues. Corporate tax collections remained broadly unchanged relative to projections, while personal income tax continued to provide consistent support. STT collections also reflected continued activity in equity markets. 

Read More: India’s Fertiliser Subsidy Set to Exceed ₹1.71 Lakh Crore on Higher Global Prices! 

Conclusion 

Direct tax collections in FY26 showed steady expansion, though below revised expectations. The figures suggest a phase of moderated growth, with stable contributions from both corporate and personal taxes and limited variation in overall revenue trends. 

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