India’s Net Direct Tax Collections Rise 5.12% to ₹23.40 Trillion in FY26

The India’s net direct tax collections grew by 5.12% to over ₹23.40 trillion in FY26 and it is reflecting the steady revenue growth despite missing the revised targets. As per the data released by Central Board of Direct Taxes the collections indicates a resilient tax base which is supported by corporate and personal income taxes. The government had projected the higher revenues in revised estimates but the actual figures highlights the progress in compliance and challenges during the financial year.

Moderate Growth in Net Direct Tax Collection in FY26

The total net direct tax collection which includes the both corporate and personal taxes has reached ₹23.40 trillion in the FY26 as compared to the ₹22.26 trillion in FY25.

This year it marks a 5.12% year on year increase and showcase the stable but slightly moderated growth.

Despite this strong tax collections it is still short of the government’s revised estimates which is around ₹24.21 trillion which indicates a gap between the projections and performance.

The Breakdown of Tax Collections

This tax data showcase that it is the balanced contribution from the corporate and individual taxpayers.

The Corporate Tax Collection stood at around ₹10.99 lakh crore.

And the Personal Income Tax including the Security Transaction Tax is stood at ₹12.41 trillion.

Personal income tax is still the major contributor for the tax collections.

Gross Direct Tax Collection and Refund Trends

Apart from the net collections gross direct tax figures also provide the detailed insights into the overall tax ecosystem.

• Gross Direct Tax Collection: ₹28.12 lakh crore (which is up to 4.03%)
• Refunds Issued: ₹4.71 trillion (down by 1.09%)

The decline in the refunds suggests that the better tax planning and fewer excess payments gross collections indicates consistent inflows.

Understanding Direct Taxes in India

What Are Direct Taxes?

The Direct taxes are taxes paid directly by the individuals or organizations to the government.

These includes the,

• Income Tax
• Corporate Tax
• Securities Transaction Tax (STT)

They are important source of the government revenue and it reflect the economic health of a country.