Direct Tax Mop-Up Stays Strong In FY26 So Far, Net Collections Rise 8% To ₹17.05 Lakh Crore By December

New Delhi: India’s net direct tax collections recorded steady growth in the current financial year, rising 8 percent to Rs 17.05 lakh crore as of December 17, 2025. According to official data released by the Income Tax Department, net collections stood at Rs 17,04,725 crore during April–December FY26, compared with Rs 15,78,433 crore in the same period last year.

Gross direct tax collections during this period grew 4.16 percent year-on-year to Rs 20,01,794 crore, showing continued stability in tax inflows despite changes in tax policies.

Corporate tax remains the main support

Corporate tax continued to be the largest contributor to the government’s direct tax revenues. Net corporate tax collections rose to Rs 8,17,310 crore, up from Rs 7,39,353 crore a year earlier. This increase points to steady profitability among companies and better tax payments from the corporate sector.

Taxes paid by individuals and other non-corporate entities also showed growth. Net non-corporate tax collections increased to Rs 8,46,905 crore, compared with Rs 7,96,181 crore in the same period last year.

Lower refunds boost net numbers

A key reason behind the rise in net collections was a sharp fall in tax refunds. Refunds issued during April–December FY26 declined by 13.52 percent to Rs 2,97,069 crore, against Rs 3,43,499 crore last year. Lower refunds helped improve the government’s net tax position.

Securities Transaction Tax (STT) collections remained mostly flat at around Rs 40,195 crore, while other minor taxes made a smaller contribution.

Advance tax trends mixed

Advance tax collections also showed moderate growth. Total advance tax paid so far rose 4.27 percent to Rs 7,88,388 crore. Corporate advance tax increased nearly 8 percent to Rs 6,07,300 crore. However, advance tax paid by non-corporate taxpayers fell 6.49 percent to Rs 1,81,088 crore.

Tax reforms shape the year

The revenue performance comes amid major tax reforms. In the 2025 Union Budget, the government promoted the new personal income tax regime by cutting slab rates to increase disposable income and support consumption. On the indirect tax side, GST rates were streamlined into three main slabs, with stricter compliance to curb tax evasion.