India’s Net Direct Tax Collection Rises 6.33% to ₹11.89 Lakh Crore

India’s direct tax collections have shown steady growth in the current fiscal, with net receipts crossing ₹11.89 lakh crore as of October 12, 2025, marking a 6.33% year-on-year increase. According to the Income Tax Department, this surge is mainly attributed to stronger corporate tax inflows and lower tax refunds issued during the period. This performance sets a strong foundation for the government’s ambitious full-year tax collection target of ₹25.20 lakh crore for FY 2025–26.

Breakdown of the Collection

Gross vs Net Collection

• Gross direct tax collection (before refunds): ₹13.92 lakh crore
• Refunds issued: ₹2.03 lakh crore (down 16% from ₹2.41 lakh crore last year)
• Net direct tax collection (after refunds): ₹11.89 lakh crore

The decline in refund payouts has contributed to an uptick in net collections, improving the overall fiscal balance early in the year.

Category-Wise Revenue Trends

Corporate and Non-Corporate Taxes

• Corporate tax collection rose to ₹5.02 lakh crore (from ₹4.91 lakh crore in FY 2024–25)
• Non-corporate taxes (mainly income tax paid by individuals and Hindu Undivided Families): ₹6.56 lakh crore (up from ₹5.94 lakh crore)
• These figures suggest that both businesses and individuals have contributed positively to the tax base, despite ongoing global and domestic economic uncertainties.

Other Tax Components

• Securities Transaction Tax (STT) collections: ₹30,878 crore (marginal increase)
• Minor direct taxes: ₹294 crore
• The government has set a full-year STT target of ₹78,000 crore, suggesting further collection growth is anticipated in the coming quarters.

Government’s Fiscal Target for FY 2025–26

• The Union Budget 2025–26 sets a target of ₹25.20 lakh crore for direct tax collection, aiming for a 12.7% increase over the previous fiscal.
• The current figures till mid-October suggest that while progress is solid, further acceleration will be needed to meet the annual goal.
• If the current pace continues, especially with improved compliance and digital tax filing systems, the government may get closer to achieving or even exceeding this target.
• However, the performance in the remaining months—particularly the final quarter—will be crucial.

Static Facts

• Net Direct Tax Collection (as of Oct 12, 2025): ₹11.89 lakh crore
• YoY Growth: 6.33%
• Gross Direct Tax Collection: ₹13.92 lakh crore
• Refunds Issued: ₹2.03 lakh crore (↓16% YoY)
• Corporate Tax Collection: ₹5.02 lakh crore