India's net direct tax collections rise 5.12% to ₹23.4 lakh crore in FY26
Synopsis
India's tax machinery delivered steady results in FY26 — net direct tax collections crossed ₹23.4 lakh crore, up 5.12% year-on-year, with corporate tax driving gains. With refunds also declining, the net growth outpaced gross growth, signalling tighter administration and stable corporate profitability even amid global uncertainty.
Key Takeaways
India's net direct tax collections rose 5.12% to ₹23,40,406 crore in FY 2025–26 .
Gross direct tax collections grew 4.03% to ₹28,11,936 crore from ₹27,03,107 crore in FY25.
Corporate tax collections climbed to ₹13,81,606 crore , up from ₹12,72,542 crore in FY25.
Non-corporate tax collections dipped marginally to ₹13,72,474 crore from ₹13,73,905 crore.
Refunds declined 1.09% to ₹4,71,531 crore , supporting stronger net collection growth.
STT collections rose to ₹57,522 crore , reflecting active capital markets participation.
India's net direct tax collections rose 5.12 per cent year-on-year to ₹23,40,406 crore in FY 2025–26, according to data released by the Central Board of Direct Taxes (CBDT) on Monday, 4 May 2026. The growth was driven by a strong uptick in corporate tax inflows, even as non-corporate collections remained broadly flat.
Gross Collections and Refunds
Gross direct tax collections for the fiscal stood at ₹28,11,936 crore, a 4.03 per cent increase from ₹27,03,107 crore recorded in FY25. Refunds issued during the year declined marginally by 1.09 per cent to ₹4,71,531 crore, compared to ₹4,76,732 crore in the previous year. The lower refund outgo contributed to the relatively stronger growth in net collections over gross collections.
Corporate Tax Leads the Charge
Corporate tax collections recorded a notable increase, climbing to ₹13,81,606 crore from ₹12,72,542 crore in FY25 — a rise of approximately ₹1.09 lakh crore. This suggests stable profitability across sectors despite uncertain global economic conditions. Notably, collections from the Securities Transaction Tax (STT) rose to ₹57,522 crore, reflecting continued activity in capital markets.
Non-Corporate Collections See Marginal Dip
Non-corporate tax collections — covering individuals, Hindu Undivided Families (HUFs), firms, and other entities — stood at ₹13,72,474 crore, marginally lower than ₹13,73,905 crore in FY25. Analysts said the slight dip may reflect variations in individual income growth or evolving tax planning trends, rather than any structural weakening in compliance.
What Analysts and Officials Said
Analysts noted that the steady rise in net collections signals improved tax buoyancy and efficient tax administration, even amid global headwinds. The Income Tax Department announced the data on social media platform X, stating that
Point of View
Stagnation in that segment raises questions about whether real income growth is keeping pace with corporate earnings. The decline in refunds, while boosting net figures, also warrants watching: a sustained drop could indicate processing delays rather than reduced legitimate claims. The headline number is solid, but the composition tells a more nuanced story about who is actually carrying India's tax burden.
NationPress
28 Jun 2026
Frequently Asked Questions
What were India's net direct tax collections in FY26?
India's net direct tax collections in FY 2025–26 stood at ₹23,40,406 crore, a 5.12% increase year-on-year, according to data released by the CBDT on 4 May 2026.
How much did corporate tax collections grow in FY26?
Corporate tax collections rose to ₹13,81,606 crore in FY26, up from ₹12,72,542 crore in FY25, reflecting stable profitability across sectors. This was the primary driver of overall direct tax growth.
Why did non-corporate tax collections fall slightly in FY26?
Non-corporate tax collections — covering individuals, HUFs, and firms — dipped marginally to ₹13,72,474 crore from ₹13,73,905 crore in FY25. Analysts attribute this to variations in individual income growth or changes in tax planning behaviour.
How did refunds affect net direct tax collections in FY26?
Refunds declined 1.09% to ₹4,71,531 crore in FY26 from ₹4,76,732 crore in FY25. The lower refund outgo helped net collections grow faster than gross collections during the fiscal year.
What is the Securities Transaction Tax collected in FY26?
STT collections rose to ₹57,522 crore in FY26, indicating sustained trading and investment activity in India's capital markets during the fiscal year.
