Government's direct tax kitty swells as companies and individuals pay more

India’s direct tax collections for FY 2025–26 showed steady growth as net collections increased by 8.82% year-on-year up to January 11, 2026, driven by higher corporate and non-corporate tax inflows, according to data released by the government.

Gross direct tax collections for the current financial year stood at ₹21,49,831.89 crore as on January 11, 2026, compared with ₹20,64,350.94 crore in the corresponding period of FY 2024–25, reflecting a growth of 4.14%. Corporate tax collections formed a significant portion, with gross corporate tax at ₹10,46,574.28 crore, up from ₹9,71,851.07 crore a year earlier.

Non-corporate tax collections, which include taxes paid by individuals, HUFs, firms, associations of persons, bodies of individuals, local authorities and artificial juridical persons, also rose during the period. Gross non-corporate tax collections increased to ₹10,58,046.13 crore from ₹10,45,093.86 crore in the same period last year. Securities Transaction Tax collections remained broadly stable at ₹44,866.52 crore, while collections from other taxes stood at ₹344.96 crore.

Refunds issued during FY 2025–26 up to January 11 amounted to ₹3,11,933.57 crore, lower than ₹3,75,441.27 crore issued during the corresponding period of the previous financial year, marking a decline of 16.92%. Corporate tax refunds declined to ₹1,83,535.40 crore from ₹2,04,111.05 crore, while non-corporate tax refunds fell to ₹1,28,374.44 crore from ₹1,71,281.34 crore.

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After adjusting for refunds, net direct tax collections rose to ₹18,37,898.32 crore as on January 11, 2026, compared with ₹16,88,909.67 crore in the same period last year. Net corporate tax collections increased to ₹8,63,038.88 crore, while net non-corporate tax collections stood at ₹9,29,671.69 crore, underscoring the overall improvement in direct tax mobilisation during the current financial year.