India's Direct Tax Collections Grow 5% to Over ₹23.40 Trillion in FY26
Net direct tax collection rises 5% to over ₹23.40 trillion in FY26
Business Standard
Image: Business Standard
India's net direct tax collections increased by 5.12% to exceed ₹23.40 trillion (approximately $282 billion USD) in the fiscal year 2025-26, falling short of the revised target of ₹24.21 trillion. The collections included ₹10.99 trillion from corporate taxes and ₹12.41 trillion from personal income taxes.
- 01Net direct tax collections reached over ₹23.40 trillion in FY26.
- 02The growth rate of direct tax collections was 5.12% compared to FY25.
- 03Corporate tax contributed ₹10.99 trillion, while personal income tax contributed ₹12.41 trillion.
- 04The revised target for direct tax collection was ₹24.21 trillion.
- 05Refunds issued decreased by 1.09% to ₹4.71 trillion.
Advertisement
In-Article Ad
In the fiscal year 2025-26, India's net direct tax collections rose by 5.12% to reach over ₹23.40 trillion (approximately $282 billion USD), according to the Central Board of Direct Taxes (CBDT). This figure, however, fell short of the revised budgeted target of ₹24.21 trillion. The collections comprised ₹10.99 trillion from corporate taxes and ₹12.41 trillion from personal income taxes, including Securities Transaction Tax. Gross direct tax collections for the year amounted to around ₹28.12 trillion, marking an increase of 4.03% from the previous fiscal year. Additionally, the issuance of refunds saw a slight decline of 1.09%, totaling ₹4.71 trillion.
Advertisement
In-Article Ad
The increase in direct tax collections indicates a growing economy, which can lead to enhanced public spending and infrastructure development.
Advertisement
In-Article Ad
Reader Poll
Do you think the government should adjust tax rates based on collection performance?
Connecting to poll...
More about Central Board of Direct Taxes
Read the original article
Visit the source for the complete story.