India’s net direct tax collections have risen 7% so far this fiscal to over ₹12.92 lakh crore, driven by sustained growth in receipts from non-corporate taxpayers and a continued decline in refunds, according to data released by the Central Board of Direct Taxes (CBDT) on Monday.
This marks the third consecutive month of growth in net collections, following a period of decline earlier in the fiscal year.
Robust Non-Corporate Performance
Non-corporate taxpayers — which include individuals, Hindu Undivided Families (HUFs), firms, associations of persons, bodies of individuals, local authorities, and artificial juridical persons — have shown particularly strong performance. Net non-corporate tax receipts stood at about ₹7.19 lakh crore between April 1 and November 10, up from ₹6.62 lakh crore in the same period last year.
Corporate tax collections during the same period amounted to around ₹5.37 lakh crore, higher than ₹5.08 lakh crore a year earlier. Meanwhile, collections from the Securities Transaction Tax (STT) were marginally lower at ₹35,681.88 crore, compared to ₹35,922.82 crore last year, reflecting the largely sideways movement of equity indices.
Refunds Decline Sharply
Gross direct tax collections, before accounting for refunds, rose 2.15% year-on-year to ₹15.35 lakh crore from ₹15.03 lakh crore. Refunds during the same period dropped over 17%, to ₹2.43 lakh crore — the second consecutive monthly decline in payouts.
Outlook and Expert View
For FY26, the Union Budget has pegged total direct tax collections at ₹25.20 lakh crore, a targeted growth of 12.35% over the revised estimate of ₹22.37 lakh crore for FY25.
According to Rohinton Sidhwa, Partner at Deloitte India, the sustained momentum in non-corporate tax collections despite last year’s rate cuts is “a very good sign showing stronger growth of income levels.”
“Refunds, on the other hand, have come down very significantly. This could mean that taxpayers who paid cash taxes are either no longer in the tax net or that the government has consciously throttled back on refunds,” he said.
Sidhwa added that STT collections have remained largely flat, though the surge in IPO activity suggests potential for further growth in the months ahead.