Corporate Tax Growth Lifts Direct Tax Revenue Despite Modest Gross Increase

Direct tax collections for FY 2025–26, up to 17 December 2025, reflect moderate but stable growth supported by higher gross receipts and a sharp reduction in refunds. Gross direct tax collections rose by 4.16% to ₹20.02 lakh crore compared to the corresponding period of the previous year. Refunds declined significantly by 13.52% to ₹2.97 lakh crore, resulting in a stronger net direct tax collection of ₹17.05 lakh crore, marking an 8% increase year-on-year. Corporate tax net collections increased to ₹8.17 lakh crore, while non-corporate tax net collections reached ₹8.47 lakh crore, indicating balanced contributions across taxpayer segments. Securities Transaction Tax remained largely unchanged. Advance tax collections stood at ₹7.88 lakh crore, registering a 4.27% overall growth, led by a nearly 8% rise in corporate advance tax, despite a decline in non-corporate advance tax payments. Overall, the data points to resilient revenue mobilisation and improved refund management.

Direct Tax Collections for F.Y. 2025-26 (as on 17.12.2025)

(Rs. In Crore)

Source: TINMIS

* 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 17.12.2025)

(Rs. In Crore)

Source: TINMIS

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