India's direct tax collection has increased by 6.33% to over ₹11.89 lakh crore by October 12 in the current financial year. The main reasons for this include an increase in corporate tax and a reduction in refunds. The government has set a target of ₹25.20 lakh crore in tax collection for the entire financial year.
Direct Tax Collection: The Indian government has witnessed a significant increase in direct tax collection in the current financial year 2025-26. By October 12, the net direct tax collection rose by 6.33 percent to over ₹11.89 lakh crore. The primary contributors to this growth were an increase in corporate tax collection and a reduction in refund payments. The government aims to collect ₹25.20 lakh crore for the entire fiscal year, marking a 12.7 percent increase. Non-corporate tax and Securities Transaction Tax (STT) have also seen growth, strengthening the treasury's position.
Increase in Corporate Tax and Decrease in Refunds
According to available information, the net corporate tax collection from April 1 to October 12 this year was approximately ₹5.02 lakh crore. During the same period last year, it stood at ₹4.92 lakh crore. Furthermore, refunds issued during this period decreased by 16 percent, amounting to ₹2.03 lakh crore.
Non-corporate tax collection has also increased. By October 12 in the current financial year, non-corporate tax stood at approximately ₹6.56 lakh crore, compared to ₹5.94 lakh crore during the same period last year. Thus, tax collection from both corporate and non-corporate sources has shown consistent and robust growth.
Increase in Securities Transaction Tax (STT)
Securities Transaction Tax (STT) collection has also seen a marginal increase. By October 12 in the current financial year, STT collection amounted to ₹30,878 crore. During the same period a year ago, it was ₹30,630 crore. This clearly indicates an increase in transactions related to the stock market and securities, and active investor participation.
Status of Net Direct Tax Collection
In the current financial year, net direct tax collection, which includes Personal Income Tax and Corporate Tax, surpassed ₹11.89 lakh crore by October 12. A year ago, this figure was approximately ₹11.18 lakh crore. This signifies a 6.33 percent increase in net direct tax collection over a year.
Furthermore, gross direct tax collection, before adjusting for refunds, exceeded ₹13.92 lakh crore. This represents an annual increase of 2.36 percent. This rise in gross collection is attributed to the government's tax policy and robust economic activities.
Government's Target
The government has set a direct tax collection target of ₹25.20 lakh crore for the current financial year 2025-26. This target is 12.7 percent higher on an annual basis. Experts believe that a b corporate sector, economic reforms, active investor participation, and controlled refund payments will play key roles in achieving this target.
According to data released by the government, several aspects of tax collection in the current financial year are progressing satisfactorily. Corporate tax collection has remained b, non-corporate tax collection has improved, and STT collection has shown stable growth.
Improvement in Non-Corporate Tax
During this period of the financial year 2025-26, non-corporate tax collection was approximately ₹6.56 lakh crore. This compares to ₹5.94 lakh crore in the previous year. This increase reflects the contribution of individual taxpayers and small businesses to the government's treasury.
Tax reforms implemented by the government and measures to control refund payments have strengthened tax collection. Additionally, the increase in corporate tax and stable income of individual taxpayers have also contributed to this growth. Experts believe that this situation will help the government achieve financial stability and implement its schemes.
