Net Direct Tax Collection Sees 5 Percent Increase to Rs 23.40 Lakh Crore in FY26, Fails to Meet Revised Estimates

Government's Net Direct Tax Collections Grow 5.12% in 2025-26, Miss Revised Budget Target

The Central Board of Direct Taxes (CBDT) has reported that the government's net direct tax collections have grown by 5.12% to over Rs 23.40 lakh crore in the fiscal year 2025-26. However, this figure falls short of the revised budgeted target set for the fiscal year that ended on March 2026.

In the revised estimates (RE) for the fiscal year 2025-26, the government had projected its direct tax collection at Rs 24.21 lakh crore. This included a corporate tax of Rs 11.09 lakh crore and personal income tax (including STT) of Rs 13.12 lakh crore. The actual breakdown of net corporate tax mop-up was Rs 10.99 lakh crore, and personal income tax, including Securities Transaction Tax, was about Rs 12.41 lakh crore.

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The net direct tax collection (including corporate and non-corporate tax) came in at Rs 23.40 lakh crore in FY26, registering a 5.12% growth over Rs 22.26 lakh crore collected in FY25. On the other hand, refund issuance dipped 1.09% year-on-year to Rs 4.71 lakh crore in 2025-26.

Interestingly, gross direct tax collection during the recently concluded fiscal stood at about Rs 28.12 lakh crore, up 4.03% from the 2024-25 fiscal.