Direct Tax Collections Rise 7.19% Due to Lower Refunds Impact

Direct tax collections for FY 2025–26 (up to 17 March 2026) show moderate but steady growth compared to the previous year. Gross collections increased by 4.86% to ₹27.14 lakh crore, driven mainly by higher corporate tax and non-corporate tax receipts, while securities transaction tax also saw a marginal rise. However, refunds declined by 5.86% to ₹4.34 lakh crore, contributing to a stronger net collection growth of 7.19%, reaching ₹22.80 lakh crore. Corporate tax collections recorded notable improvement, while non-corporate tax growth remained stable. Advance tax collections rose by 6.42% overall, with corporate advance tax growing significantly by 9.54%, whereas non-corporate advance tax declined slightly by 1.78%. The data indicates improved tax buoyancy, better compliance, and sustained economic activity, with corporate sector performance playing a key role in boosting overall tax revenues despite a marginal dip in non-corporate advance tax contributions.

Direct Tax Collections for F.Y. 2025-26 (as on 17.03.2026)

(Rs. In Crore)

Source: TINMIS

STT: Securities Transaction Tax

NCT: Non-Corporate Tax

CT: Corporate Tax

* NCT includes taxes paid by individuals, HUFs, Firms, AoPs, BoIs, Local Authorities, Artificial Juridical Person

Advance Tax Collections for F.Y. 2025-26 (as on 17.03.2026)

(Rs. In Crore)

Source: TINMIS

* NCT includes taxes paid by individuals, HUFs, Firms, AoPs, BoIs, Local Authorities, Artificial Juridical Person