Direct Tax Collection Falls Short of Revised Target in FY26

The Indian government's net direct tax collections increased by 5.12% in the fiscal year 2025-26, reaching Rs 23.40 lakh crore but did not meet the revised budget target of Rs 24.21 lakh crore. Corporate tax collection was Rs 10.99 lakh crore, while personal income tax reached Rs 12.41 lakh crore.

The Indian government's net direct tax collections for the fiscal year 2025-26 rose by 5.12% to over Rs 23.40 lakh crore. However, this figure fell short of the revised budget target of Rs 24.21 lakh crore set for the period ending March 2026.

The revised estimates projected the collection to include Rs 11.09 lakh crore from corporate tax and Rs 13.12 lakh crore from personal income tax, including the Securities Transaction Tax (STT). However, the actual figures showed a net corporate tax mop-up of Rs 10.99 lakh crore and personal income tax collection, incorporating STT, of around Rs 12.41 lakh crore.

According to the Central Board of Direct Taxes (CBDT), the net direct tax collection was Rs 23.40 lakh crore, an increase from Rs 22.26 lakh crore in FY25. The issuance of refunds dipped slightly by 1.09% year-on-year to Rs 4.71 lakh crore, while the gross direct tax collection for the fiscal remained at about Rs 28.12 lakh crore, marking a 4.03% increase from the previous fiscal year.