India's government reported a 5% increase in direct tax collections for the fiscal year 2026, totaling ₹23.4 trillion (roughly $284 billion USD). However, this figure fell short of the revised target of ₹24.2 trillion, resulting in a 3.3% shortfall. The corporate tax revenue amounted to ₹10.99 trillion, reflecting an 11.4% growth compared to FY25, while personal income tax collections reached ₹11.83 trillion, which was below the revised target of ₹13.12 trillion. The government issued ₹4.71 trillion in tax refunds during the year, slightly less than the previous year. Looking ahead, the government has set an ambitious target of ₹26.97 trillion for FY27, necessitating a 15.2% increase in direct tax collections. Experts note that despite significant tax rate cuts, personal income tax revenues have remained stable, indicating a growth in both collection amounts and the number of taxpayers.