Surge in Direct Tax Collection as Corporate Taxes Thrive

Net direct tax collection has seen a 6.33% increase, reaching over Rs 11.89 lakh crore by October 12 this fiscal year, largely driven by higher corporate tax revenue. Refund issuance decreased by 16%, while the government forecasts a rise to Rs 25.20 lakh crore in direct tax collection for the fiscal year 2025-26.

Net direct tax collection has increased by 6.33%, reaching over Rs 11.89 lakh crore this fiscal, thanks to a surge in corporate tax revenue and decreased refund issuances.

Refund issuances saw a 16% drop, amounting to Rs 2.03 lakh crore between April 1 and October 12.

The government has projected its direct tax collection to rise to Rs 25.20 lakh crore for fiscal year 2025-26, with a target to collect Rs 78,000 crore from Securities Transaction Tax (STT).