Daijiworld Media Network - New Delhi
New Delhi, Oct 13: India’s net direct tax revenue surged 6.33% year-on-year to Rs 11.89 lac crore in the current financial year up to October 12, the Income Tax Department announced on Monday, marking steady progress toward the government’s ambitious Rs 25.20 lac crore collection target for FY 2025–26.
The gross direct tax collections touched Rs 13.92 lac crore, an increase from Rs 13.60 lac crore collected during the same period last year. This uptick was largely powered by improved corporate tax inflows and reduced outgoings in tax refunds.
Refund payouts fell sharply by 16% to Rs 2.03 lac crore, compared to Rs 2.41 lac crore issued during the corresponding period in FY25. Lower refund levels contributed significantly to the rise in net collections.
Breaking down the figures, corporate tax revenue rose modestly to Rs 5.02 lac crore from Rs 4.91 lac crore, while non-corporate tax collections — comprising individual taxpayers and Hindu Undivided Families (HUFs) — grew more robustly to Rs 6.56 lac crore from Rs 5.94 lac crore.
The Securities Transaction Tax (STT) also saw a slight increase, totaling Rs 30,878 crore in the reporting period.
The Central government’s direct tax target for FY26 represents a 12.7% increase over the previous year, and the current pace suggests India is on track to meet it, barring any major economic disruption in the coming months.
In a broader sign of fiscal health, goods and services tax (GST) collections also posted strong performance. September saw GST revenues jump 9.1% year-on-year to Rs 1.89 lac crore — the fastest growth in four months and the ninth consecutive month of inflows exceeding Rs 1.8 lakh crore. This recovery outpaced August’s 6.5% growth, signaling renewed momentum in consumption and compliance.
For Q2 of FY26, total GST collections stood at Rs 5.71 lakh crore, reflecting a 7.7% increase from the same quarter last year. However, this was slower than the 11.7% growth seen in the April–June quarter.
Together, the trends in direct taxes and GST reflect resilient economic activity, though varying growth rates indicate sectoral divergences in recovery and tax buoyancy.