New Delhi: India’s net direct tax collection has increased by 8.8 percent in the current financial year up to January 11, reaching ₹18.37 lakh crore, compared to ₹16.88 lakh crore during the same period last year, according to the Income Tax Department.
The department’s press release highlighted that net corporate tax collections stood at ₹8.63 lakh crore, while net personal income tax collections reached ₹9.29 lakh crore in the review period. Additionally, securities transaction tax (STT) collections amounted to ₹44,866.52 crore, with other taxes contributing ₹321.23 crore to the government’s revenue.
During this period, the government issued refunds totaling ₹3.11 lakh crore, marking a 16.92 percent decline compared to ₹3.75 lakh crore in the corresponding period of the previous year. Of these refunds, ₹1.83 lakh crore were paid to corporations and ₹1.28 lakh crore to individual taxpayers.
When refunds are added back, the gross tax collections for April 1 to January 11 rose by 4.14 percent year-on-year to ₹21.49 lakh crore. This includes gross corporate tax collections of ₹10.46 lakh crore and gross personal income tax collections of ₹10.58 lakh crore.
The strong tax collection reflects the robust growth of India’s economy. A Morgan Stanley report projects real GDP growth of 7.6 percent for FY26, surpassing the National Statistical Office’s earlier estimate of 7.4 percent. The market consensus for FY26 growth stands at 7.5 percent, while the Reserve Bank of India estimates 7.3 percent growth.
The report attributes this positive outlook to supportive government expenditure and monetary policy, improved consumer purchasing power, and better employment conditions, which together are expected to boost consumption and strengthen economic recovery.
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