Is India's net direct tax collection up more than 6% to Rs 11.89 lakh crore by October 12?
Click to start listening
Synopsis
India’s net direct tax revenue has surged by 6.33 percent, totaling over Rs 11.89 lakh crore by October 12. This increase is driven by strong corporate tax contributions and a reduction in refunds, marking a significant milestone for the fiscal year 2025-26.
Key Takeaways
- India's net direct tax revenue has increased by 6.33 percent.
- Total gross direct tax collection reached Rs 13.92 lakh crore.
- Corporate tax collections rose to Rs 5.02 lakh crore.
- Refunds issued decreased by 16 percent.
- The direct tax collection target for FY26 is Rs 25.20 lakh crore.
New Delhi, Oct 13 (NationPress) The Income Tax (I-T) Department revealed on Monday that India’s net direct tax revenue has increased by 6.33 percent, reaching over Rs 11.89 lakh crore for the fiscal year 2025-26 (up to October 12).
The total gross direct tax collection was recorded at Rs 13.92 lakh crore, an increase from Rs 13.60 lakh crore during the same timeframe in the previous fiscal year.
This growth is attributed to robust corporate tax collections and a slowdown in refund disbursements.
The value of refunds issued has fallen to Rs 2.03 lakh crore, reflecting a 16 percent drop compared to Rs 2.41 lakh crore in FY25.
Corporate tax revenues increased to Rs 5.02 lakh crore from Rs 4.91 lakh crore, while non-corporate tax collections (which include individual taxpayers and HUFs) rose to Rs 6.56 lakh crore, up from Rs 5.94 lakh crore.
For FY26, the Central government has established a target for direct tax collections at Rs 25.20 lakh crore, which signifies a 12.7 percent rise over the previous year.
In addition, the contribution from Securities Transaction Tax (STT) slightly increased to Rs 30,878 crore during the reported period this fiscal.
Moreover, India’s goods and services tax (GST) revenues surged by 9.1 percent year-over-year in September, reaching Rs 1.89 lakh crore, as per the latest government statistics. This signifies the highest growth rate in four months and continues the trend of monthly inflows exceeding Rs 1.8 lakh crore for nine consecutive months. The acceleration is also the quickest in four months, in comparison to 6.5 percent growth in August.
In the second quarter of FY26, collections amounted to Rs 5.71 lakh crore, reflecting a 7.7 percent year-over-year increase, albeit slower than the 11.7 percent growth observed in the previous quarter.
Point of View
The recent growth in India's net direct tax collections reflects a positive trend in economic recovery and fiscal health. The emphasis on corporate tax growth, alongside a decrease in refunds, suggests a more stable revenue stream for the government, which is crucial for funding public services and investment.
NationPress
13/10/2025
Frequently Asked Questions
What is the percentage increase in India's net direct tax collection?
India's net direct tax collection has increased by 6.33 percent.
What is the total amount of net direct tax revenue collected?
The total net direct tax revenue collected is over Rs 11.89 lakh crore.
How did corporate tax collections perform?
Corporate tax collections rose to Rs 5.02 lakh crore, up from Rs 4.91 lakh crore.
What are the refund statistics for this period?
Refunds issued declined to Rs 2.03 lakh crore, a 16 percent decrease compared to the previous year.
What is the direct tax collection target for FY26?
The target for direct tax collection set by the Central government for FY26 is Rs 25.20 lakh crore.
