How Much Did India's Net Direct Tax Revenue Increase?
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Synopsis
In a remarkable upswing, India's net direct tax revenue has soared by 9.18% to exceed Rs 10.82 lakh crore this financial year. This growth, driven by reduced refunds, is a significant indicator of the country's economic resilience. Explore the detailed breakdown of tax collections and their implications on India's fiscal health.
Key Takeaways
- Net direct tax revenue increased by 9.18%.
- Revenue surpassed Rs 10.82 lakh crore.
- Non-corporate tax revenue grew by 13.67%.
- Refunds declined by 23.87%.
- GST collections maintained growth above Rs 1.8 lakh crore.
New Delhi, Sep 19 (NationPress) India's net direct tax revenue has surged by 9.18 percent, surpassing Rs 10.82 lakh crore as of September 17 for the current financial year (2025-26), compared to the same timeframe last year. This rise is attributed to a significant reduction of 23.87 percent in refunds, as indicated by data from the Central Board of Direct Taxes released on Friday.
Within this total, non-corporate tax earnings have risen by 13.67 percent to reach Rs 5.83 lakh crore. This tax is applicable to specific entities not registered as corporations under the Companies Act.
Moreover, net corporate tax collections have experienced a 4.93 percent increase, amounting to Rs 4.72 lakh crore. The securities transactions tax (STT) saw a slight uptick of 0.57 percent, totaling Rs 26,305.72 crore, according to official statistics.
Gross direct tax collections have risen by 3.39 percent to Rs 12.43 lakh crore, while refunds have decreased by 23.87 percent to Rs 1.60 lakh crore. The majority of corporate refunds, which constitute a significant portion of total refunds, grew by 13.13 percent to Rs 1.23 lakh crore, while refunds to non-corporate taxpayers fell sharply by 63.39 percent to Rs 37,306.72 crore.
In the overall gross direct tax collected, corporate tax was Rs 5.95 lakh crore, while non-corporate tax amounted to Rs 6.20 lakh crore. The STT contributed Rs 26,305.72 crore, and other taxes accounted for Rs 297.13 crore.
Additionally, India’s GST collections increased by 6.5 percent, reaching Rs 1.86 lakh crore in August, as reported by government data earlier this month.
These GST collections have consistently remained above the Rs 1.8 lakh crore threshold for eight consecutive months, indicating a robust economic activity in the nation.
In August, the gross domestic revenue grew by 9.6 percent to Rs 1.37 lakh crore, while tax revenue from imports slightly dipped by 1.2 percent to Rs 49,354 crore. GST refunds, on the other hand, saw a 20 percent decrease year-on-year, totaling Rs 19,359 crore.
The net GST revenue for August 2025 stood at Rs 1.67 lakh crore, marking a strong 10.7 percent year-on-year growth.
The recent buoyant tax collections have significantly contributed to enhancing the country’s fiscal health and macroeconomic stability, paving the way for sustained growth.
India's fiscal deficit for the period of April to July was recorded at Rs 4.68 lakh crore, which is 29.9 percent of the estimated total for the financial year ending March 31. This indicates a strong fiscal position, with next tax receipts for this period projected at Rs 6.6 lakh crore.
Point of View
The recent growth in India's net direct tax revenue reflects a positive trend in economic activity. It highlights the government's efforts in enhancing tax collections, which are crucial for strengthening the fiscal position. As we move forward, maintaining this momentum will be vital for ensuring sustainable growth and stability in the economy.
NationPress
20/09/2025
Frequently Asked Questions
What is the current net direct tax revenue of India?
India's net direct tax revenue has crossed Rs 10.82 lakh crore as of September 17 for the financial year 2025-26.
How much has the direct tax revenue increased?
The net direct tax revenue has increased by 9.18 percent compared to the same period last year.
What factors contributed to this increase?
The increase is primarily due to a sharp decline of 23.87 percent in refunds.
How do corporate and non-corporate taxes compare?
Non-corporate tax revenue grew by 13.67 percent, while corporate tax collections increased by 4.93 percent.
What is the status of GST collections?
India's GST collections rose by 6.5 percent to Rs 1.86 lakh crore in August.
