India’s direct tax collections for the financial year 2025–26 recorded a steady growth, with net collections increasing by 5.12% to ₹23,40,406 crore as on March 31, 2026, compared to ₹22,26,375 crore in the previous financial year. The figures, released by the Principal Chief Controller of Accounts (Pr. CCA), Central Board of Direct Taxes (CBDT), highlight moderate but stable revenue expansion despite evolving economic conditions.
The gross direct tax collections stood at ₹28,11,936 crore in FY 2025–26, marking a growth of 4.03% over ₹27,03,107 crore collected in FY 2024–25. This growth was primarily driven by higher corporation tax collections and marginal increases in securities transaction tax (STT).
Corporation tax collections rose to ₹13,81,606 crore from ₹12,72,542 crore in the previous year, indicating continued profitability and compliance among corporate taxpayers. Meanwhile, non-corporate tax collections, which include taxes paid by individuals, Hindu Undivided Families (HUFs), firms, and other entities, remained largely stable at ₹13,72,474 crore as compared to ₹13,73,905 crore in FY 2024–25.
Securities Transaction Tax (STT) collections showed a slight increase, rising to ₹57,522 crore from ₹53,296 crore, reflecting sustained activity in capital markets. Other taxes, however, remained negligible, contributing marginally to the overall revenue.
On the refunds front, the government issued refunds amounting to ₹4,71,531 crore during FY 2025–26, slightly lower than ₹4,76,732 crore issued in the previous year, registering a decline of 1.09%. The reduction in refunds contributed positively to the net tax collections for the year.
The data suggests that while gross collections witnessed moderate growth, improved refund management and stable tax compliance helped push net collections above the previous year’s levels. The near-flat growth in non-corporate taxes may indicate subdued income expansion among individuals and smaller entities, while corporate tax growth reflects resilience in the formal business sector.
Overall, the direct tax performance for FY 2025–26 underscores a balanced revenue trajectory, with incremental gains supported by corporate earnings, stable market activity, and controlled refund outflows.
