How Did India’s Direct Tax Collection Achieve 8% Growth to Reach Rs 17.05 Lakh Crore in April-Dec?
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Synopsis
In a notable development, India’s net direct tax collections have surged by 8% to Rs 17.05 lakh crore in the financial year 2025-26. This growth is largely attributed to increasing corporate tax receipts and new tax relief measures aimed at boosting the economy.
Key Takeaways
- India's net direct tax collections grew by 8%.
- Current collections reached Rs 17.05 lakh crore.
- Corporate tax collections increased significantly.
- The government aims for Rs 25.20 lakh crore this fiscal year.
- Tax relief measures have been introduced for middle-class taxpayers.
New Delhi, Dec 19 (NationPress) India's net direct tax collections have seen a remarkable 8% growth, reaching Rs 17.05 lakh crore in the current financial year (2025-26), driven by a consistent rise in corporate tax receipts, according to data released by the Income Tax Department on Friday.
From April 1 to December 17, 2025, net direct tax collections amount to Rs 17,04,725 crore, compared to Rs 15,78,433 crore during the same timeframe last year. Furthermore, gross direct tax collections have increased by 4.16% year-on-year to Rs 20,01,794 crore.
The primary contributor was corporate tax, with net corporate tax collections rising to Rs 8,17,310 crore, up from Rs 7,39,353 crore last year. Net non-corporate tax collections, which include taxes from individuals and entities such as Hindu Undivided Families, rose to Rs 8,46,905 crore from Rs 7,96,181 crore.
Tax refunds issued during April-December by the Income Tax Department decreased by 13.52% to Rs 2,97,069 crore, down from Rs 3,43,499 crore in the same period the previous year.
Securities transaction tax collections remained stable at approximately Rs 40,195 crore, while the proportion of “other” taxes in total collections saw a decline.
Advance tax collections also showed strong growth, with corporate advance tax increasing nearly 8% to Rs 6,07,300 crore. Total advance tax paid rose by 4.27% to Rs 7,88,388 crore in the current financial year. However, contributions from non-corporate taxpayers fell by 6.49% to Rs 1,81,088 crore during this period.
The government aims for a target of Rs 25.20 lakh crore in direct tax collections, reflecting a 12.7% increase compared to the prior year.
Finance Minister Nirmala Sitharaman has proposed significant income tax relief measures to enhance disposable income for the middle class, boosting demand for goods and services to stimulate economic growth. Under the new tax regime, salaried taxpayers can earn up to Rs 12.75 lakh without incurring any tax due to an increased standard deduction of Rs 75,000.
The limits for Tax Deducted at Source (TDS) have also been raised for various categories, such as on interest for senior citizens to Rs 1 lakh from Rs 50,000 and on rent to Rs 6 lakh annually from Rs 2.40 lakh.
Point of View
I remain firmly committed to delivering accurate and unbiased news. The robust growth in India's direct tax collection reflects the resilience of the economy and the effectiveness of government policies. This development should be closely monitored as it has implications for fiscal health and economic stability moving forward.
NationPress
25/12/2025
Frequently Asked Questions
What is the current status of India’s direct tax collection?
India’s direct tax collection has grown by 8%, reaching Rs 17.05 lakh crore in the financial year 2025-26.
What drove the growth in direct tax collections?
The growth is primarily driven by an increase in corporate tax receipts.
What is the government's target for direct tax collections this year?
The government has set a target of Rs 25.20 lakh crore, which represents a 12.7% increase from the previous year.
How have tax refunds changed this year?
Tax refunds issued have declined by 13.52% to Rs 2,97,069 crore compared to the previous year.
What relief measures were announced for taxpayers?
Significant income tax relief measures were announced, including an increased standard deduction and raised TDS limits.
