Outlook Business Desk
India’s net direct tax collections for 2025-26 rose 6.33% year-on-year to ₹11.89 trillion as of October 12. This growth was mainly driven by higher contributions from non-corporate taxpayers, according to Central Board of Direct Taxes (CBDT) data.
Net corporate tax collections grew 2.06% to ₹5.02 trillion. Meanwhile, non-corporate tax receipts, covering individuals, Hindu Undivided Families (HUFs), firms, and other entities, surged 10.49% to ₹6.56 trillion.
Collections from the securities transaction tax saw a modest rise of 0.81%, reaching ₹30,878.46 crore, while revenues from other minor taxes dropped steeply by 86.36% to ₹293.68 crore.
Meanwhile, Gross direct tax collections rose 2.36% to ₹13.92 trillion, up from ₹13.6 trillion in the same period last year. Refunds dropped nearly 16% to ₹2.03 trillion, indicating a slowdown in outflows compared with the previous year’s high refund levels.
On the other hand, Corporate tax refunds reached ₹1.41 trillion, while refunds for non-corporate taxpayers dropped to ₹62,359 crore. Tax experts say the slower growth in corporate tax is due to weaker profits in some sectors and higher depreciation claims from ongoing capital spending.
Despite global economic challenges, Abhishek A Rastogi founder of Rastogi Chambers highlighted the rise in net direct taxes from individuals, firms, and professionals shows India’s tax base is broadening, with growth now spreading across sectors rather than being limited to large corporates.
Rastogi also noted that improved digital compliance and wider formalisation have made India’s tax system more transparent and efficient. The steady rise in tax revenues reflects strong economic fundamentals and underlines the country’s progress on fiscal consolidation and financial stability.
Himanshu Parekh, partner at KPMG, observed that gross direct tax growth of 2.36% lags behind India’s strong GDP expansion. He emphasised that the government will need targeted measures to boost tax collections and maintain fiscal discipline for the remainder of the year.