India’s Net Direct Tax Collections Rise 7% to ₹12.92 Lakh Crore in FY26 Till November 10

India’s direct tax collections, after adjusting for refunds, reached ₹12.92 lakh crore between April 1 and November 10, 2025 (FY26), according to provisional data released by the Income Tax Department on Tuesday. The figure marks a 7% year-on-year growth over the same period last year.

While the increase reflects steady tax inflows, the pace of growth remains below the government’s full-year projection made in the Union Budget for FY26, which estimated a 16.1% rise in net direct tax collections.

Breakdown of Collections

As per official data, gross direct tax collections stood at ₹15.35 lakh crore during the April–November 10 period, representing a 2.15% increase compared to the same period last fiscal.

After adjusting for refunds, net corporate tax collections amounted to ₹5.37 lakh crore, showing a 5.7% rise year-on-year. Meanwhile, net non-corporate tax collections, which include personal income tax and securities transaction tax (STT), stood at ₹7.55 lakh crore, reflecting an 8.2% increase from the previous year.

In contrast, the FY26 Budget had projected corporate tax revenue to grow by 9.7%, and non-corporate tax collections to expand by 21.6% for the full fiscal year.

Refund Trends

Refunds issued during the period totalled ₹2.42 lakh crore, which is 17% lower than the ₹2.95 lakh crore disbursed in the same period of the previous fiscal (FY25). The decline in refunds contributed to the higher net collection figures, even as gross receipts grew modestly.

The moderation in refund outflows may also indicate improved efficiency in tax reconciliation and fewer pending claims compared to last year.

Growth Context

The slower pace of direct tax growth compared to budget estimates suggests a potential shortfall relative to projections, although the fiscal year remains ongoing. The government has been relying on higher tax compliance and stable consumption to meet its fiscal targets, even as non-tax revenues and disinvestment proceeds face challenges.

Read More: India’s Energy Demand Expected to Grow 5% with 7% GDP Expansion.

Conclusion

India’s net direct tax collections for FY26 stood at ₹12.92 lakh crore as of November 10, recording a 7% annual growth. While both corporate and personal tax receipts continue to rise, the overall pace remains below the Union Budget’s full-year expectations.

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