Net Direct Tax Revenue Rises 7% To Rs 12.92 Lakh Crore In FY26 So Far

India's net direct tax collections have shown a notable increase, climbing to ₹12.92 lakh crore in the current fiscal year 2025-26. This represents a 7% rise compared to the same period in the previous year, driven by increased corporate tax revenues and a slowdown in the issuance of refunds.

The gross direct tax collections up to November 10 reached ₹15.35 lakh crore, marking a 2.15% increase compared to the corresponding period of the previous year. This figure precedes deductions for refunds. After accounting for refunds, which experienced a significant decline of 17.72%, the net direct tax collection stands at ₹12.92 lakh crore.

In the period between April 1 and August 11 of FY26, net direct tax collection stood at ₹6.64 trillion, which was a 3.95% decline from the ₹6.91 trillion collected during the same period in FY25. This decrease was primarily attributed to a surge in refunds, which increased by 10% to ₹1.35 trillion during that period. However, more recent data indicates a positive shift in net direct tax collections.

As of September 17, FY26, the net direct tax collection had grown by 9.18% to reach ₹10.82 trillion. This growth was largely fueled by higher non-corporate taxes and reduced refunds. Of this, non-corporate tax grew by 13.67% to ₹5.83 trillion. Net corporate tax saw an increase of 4.93% to ₹4.72 trillion, while the securities transactions tax (STT) increased 0.57% to ₹26,305.72 crore.

The government is optimistic about meeting its FY26 net direct tax target of ₹25.2 lakh crore, a substantial increase from the ₹22.3 lakh crore collected in FY25. Last year, direct tax collections grew by 13.6%, surpassing the initial budgeted target.

The consistent increase in direct tax collections signals the strength of India's revenue system. It is expected to provide additional fiscal space for government spending and various development initiatives.