India’s net direct tax collections for FY 2025-26 rose 6.33 per cent year-on-year to ₹11.89 trillion as of October 12, driven largely by higher contributions from non-corporate taxpayers, according to data released by the Central Board of Direct Taxes (CBDT).
Net corporate tax collections grew 2.06 per cent to ₹5.02 trillion, while non-corporate tax collections — which include payments by individuals, Hindu Undivided Families (HUFs), firms, and other entities — surged 10.49 per cent to ₹6.56 trillion.
Collections from the securities transaction tax (STT) edged up 0.81 per cent to ₹30,878.46 crore, while receipts under other minor taxes fell sharply by 86.36 per cent to ₹293.68 crore.
Gross direct tax collections during the period rose 2.36 per cent to ₹13.92 trillion, compared with ₹13.6 trillion in the same period last year. Refunds declined 15.98 per cent to ₹2.03 trillion, indicating a slowdown in outflows compared to the previous year’s aggressive refund pace. Corporate refunds stood at ₹1.41 trillion, while refunds to non-corporate taxpayers dropped to ₹62,359.29 crore.
Tax experts attributed the slower growth in corporate tax receipts to weaker profit trends in certain industries and higher depreciation claims tied to ongoing capital investments.
Abhishek A Rastogi, founder of Rastogi Chambers, said the steady increase in non-corporate tax collections underscores India’s widening tax base and growing economic participation. “The surge in contributions from individuals, firms, and professionals shows that growth is spreading beyond large corporates, reflecting stronger domestic demand and income momentum,” he noted.
Rastogi added that the trend signals greater formalisation and improved digital compliance, enhancing the transparency and efficiency of India’s tax system. “The buoyancy in tax revenues highlights the strength of India’s economic fundamentals and its steady fiscal consolidation path,” he said.
However, Himanshu Parekh, partner at KPMG, cautioned that the 2.36 per cent growth in gross direct tax collections appears modest and is not fully aligned with the country’s strong GDP growth this year. “To maintain fiscal discipline, the government will need to adopt measures to ensure higher tax growth for the remainder of the fiscal year,” Parekh said.