According to data released by the Income Tax Department on December 19, India’s net direct tax collection for FY 2025-26 has increased by 8% compared to last year to **₹17,04,725 crore** (approximately ₹17.05 lakh crore).
This compares to ₹15,78,433 crore in the same period last year. Gross collections increased by 4.16% to more than ₹20.01 lakh crore.
Corporate tax drove this growth, with net collections rising to **₹8,17,310 crore** (up from ₹7,39,353 crore). Net non-corporate tax (including personal income tax) increased from ₹7,96,181 crore to **₹8,46,905 crore**.
Refunds declined 13.52% to **₹2,97,069 crore**, helping the net figures. Securities transaction tax remained almost flat at ₹40,195 crore.
Advance tax collections increased by 4.27% to **₹7,88,388 crore**, with corporate advance tax rising by nearly 8% to ₹6,07,300 crore, although non-corporate contribution declined by 6.49% to ₹1,81,088 crore.
The government has set a target of **₹25.20 lakh crore** (12.7% growth) in direct tax for FY26. Among the recent Budget measures, the new tax system includes higher standard deduction for zero tax on income up to ₹12.75 lakh (up to ₹75,000) and increased TDS thresholds (e.g., ₹1 lakh on interest for senior citizens, ₹6 lakh on rent), aimed at boosting disposable income and consumption.
This performance reflects stable economic activity amid tax reforms.
Comments are closed.