India’s net direct tax collections rise 6.3pc to ₹11.89 lakh crore; strong corporate tax, slower refunds drive growth

THEBUSINESSBYTES BUREAU

NEW DELHI, OCTOBER 13, 2025

India’s net direct tax collections surged 6.33 per cent year-on-year to ₹11.89 lakh crore as of October 12, 2025, reflecting steady momentum in the government’s revenue inflows, according to data released by the Income Tax Department on Monday.

Gross direct tax collections touched ₹13.92 lakh crore in the current financial year (FY 2025-26), up from ₹13.60 lakh crore during the same period last year. The growth has been largely fuelled by robust corporate tax receipts and moderated refund disbursals.

Refunds worth ₹2.03 lakh crore have been issued so far this fiscal, marking a 16 per cent decline from ₹2.41 lakh crore in the corresponding period of FY25, thereby boosting the net tax mop-up.

Breaking down the numbers, corporate tax collections rose to ₹5.02 lakh crore from ₹4.91 lakh crore, while non-corporate tax receipts — including income tax from individuals and Hindu Undivided Families (HUFs) — climbed to ₹6.56 lakh crore from ₹5.94 lakh crore last year.

For FY26, the Centre has set an ambitious direct tax collection target of ₹25.20 lakh crore, 12.7 per cent higher than the previous year’s target.

Meanwhile, the Securities Transaction Tax (STT) contribution also inched up to ₹30,878 crore during the period.

Complementing the buoyant direct tax trend, India’s GST collections rose 9.1 per cent year-on-year in September to ₹1.89 lakh crore — the fastest pace in four months. The monthly GST inflows have now remained above ₹1.8 lakh crore for nine consecutive months, underscoring strong consumption and compliance trends.

In the July–September quarter of FY26, GST collections totalled ₹5.71 lakh crore, registering a 7.7 per cent annual growth, though slightly slower than the 11.7 per cent expansion seen in the first quarter.