India’s direct tax collections have maintained steady momentum, with the latest data indicating a year-on-year increase in net collections (as of November 10, 2025), according to latest data from the Central Board of Direct Taxes (CBDT). The rise in tax collections underscores resilient corporate profitability, expanding individual tax base and improved compliance.
According to the latest numbers for FY 2025-26 (up to November 10, 2025), net direct tax collections have touched Rs 12.92 lakh crore, compared with Rs 12.07 lakh crore in the same period last year. This reflects a growth of 7 per cent year on year, even as refunds have fallen sharply.
Corporate tax leads the rise
Corporate tax (CT) collections have shown strong performance this year.
Gross corporate tax collections rose from Rs 6.60 lakh crore in FY25 to Rs 6.91 lakh crore in FY26.
Net corporate tax collections (after refunds) stood at Rs 5.37 lakh crore, compared with Rs 5.07 lakh crore in the year-ago period.
The steady uptick indicates continued profitability among companies despite a volatile global economic backdrop.
Higher non-corporate tax inflows show an expanding taxpayer base
Non-corporate tax (NCT) or personal income tax collections — which include taxes paid by individuals, HUFs, firms, AOPs, BOIs and other non-corporate entities — also recorded growth.
Gross personal income tax collections moved up from Rs 8.03 lakh crore last year to Rs 8.08 lakh crore this year.
Net personal income tax collections increased more sharply, rising 17.72 per cent to Rs 7.19 lakh crore, compared with Rs 6.61 lakh crore last year.
The strong rise in net non-corporate tax collections suggests higher advance tax payments by individuals and firms, as well as better enforcement and reporting.
STT and other taxes remain stable
Securities Transaction Tax (STT) collections stayed nearly flat year on year, at roughly Rs 35,682 crore. A similar steady trend was seen in other smaller tax categories.
Rohinton Sidhwa, Partner, Deloitte India, said, “The data shows that remarkably, non-corporate tax collections have kept pace despite the very significant rate cut last year. This is a very good sign showing stronger growth in income levels. Refunds, on the other hand, have come down very significantly. This could mean that taxpayers who paid cash taxes are either no longer in the tax net or the Government has consciously throttled back on refunds.”
“STT collections have largely been flat – reflecting the sideways movement of the indices. Given the IPO expansion there is potential there for more growth.”
Gross vs Net: The refund factor
Gross direct tax collections for FY’26 (up to November 10) were Rs 15.35 lakh crore, up 2.15 per cent from last year’s Rs 15.02 lakh crore. Refunds issued were marginally higher this year at Rs 2.42 lakh crore, compared with Rs 1.52 lakh crore last year, which explains why net growth (7 per cent) outpaced gross growth.
What drives the rise in net direct taxes?
Consistent corporate earnings, broader personal tax base due to formalisation, higher advance tax payments, stronger compliance and reporting and ongoing economic recovery are some of the reasons behind rise in net direct taxes.