Direct Tax Collections Rise 7.2% to ₹22.8 Lakh Crore in FY26 So Far
Gross collections touched ₹27.15 lakh crore, while advance tax payments grew 6.42%, reflecting resilient earnings and steady compliance.
India’s direct taxcollection continued to expand in FY 2025–26, with provisional figures showing net collections of ₹22.80 lakh crore as of March 17, 2026. This represents a 7.19% year‑on‑year increase, underscoring resilient corporate earnings and steady compliance among non‑corporate taxpayers.
According to data released by the Income Tax Department, gross direct tax collections before refunds stood at ₹27.15 lakh crore, up 4.86% from ₹25.89 lakh crore in the same period last year. Refunds issued during the year amounted to ₹4.35 lakh crore, slightly lower than the ₹4.62 lakh crore released in FY 2024–25, resulting in stronger net inflows.
Corporate tax collections contributed significantly, rising to ₹10.92 lakh crore net, compared with ₹9.68 lakh crore a year earlier. Non‑corporate tax collections, which include payments by individuals, firms, and other entities, also grew to ₹11.32 lakh crore from ₹11.03 lakh crore. Securities Transaction Tax (STT) collections climbed modestly to ₹55,717 crore, while other minor taxes registered a decline.
Advance tax payments, a key indicator of taxpayer confidence and profitability, showed a mixed trend. Corporate advance tax rose 9.54% to ₹8.30 lakh crore, reflecting buoyant earnings in sectors such as banking, IT, and manufacturing. However, non‑corporate advance tax slipped 1.78% to ₹2.83 lakh crore, pulling overall advance tax growth to 6.42%.
The latest figures reaffirm the government’s fiscal position ahead of the close of FY 2025–26, providing room for infrastructure spending and welfare commitments. With direct taxes forming a crucial component of revenue mobilization, the growth trajectory is expected to support fiscal consolidation while sustaining economic momentum.
The moderation in refunds also contributed to higher net receipts, though authorities emphasized that refund processing continues to be streamlined to ensure taxpayer convenience.
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