India's net direct tax collections jump 8.82% to Rs 18.38 lakh crore

India's net direct tax collections rose 8.82% to Rs 18.38 lakh crore for FY26 as of Jan 11. Gross collections stood at Rs 21.50 lakh crore, with lower refunds contributing to the higher net figure, according to Income Tax Dept data.

India's net direct tax collections for the financial year 2025-26 have recorded a strong growth of 8.82 per cent, reaching Rs 18.38 lakh crore as of January 11, 2026, compared with Rs 16.89 lakh crore collected during the same period last year, according to official data released by the Income Tax Department on Monday.

Breakdown of Tax Collections

Gross direct tax collections stood at Rs 21.50 lakh crore, marking a 4.14 per cent increase over the Rs 20.64 lakh crore collected in the corresponding period of FY25. Corporate tax collections rose modestly to Rs 10.47 lakh crore, while non-corporate tax collections, which include taxes paid by individuals and other entities, increased to Rs 10.58 lakh crore.

The Union Budget 2026 will be presented on February 1. Refunds issued during the period declined sharply by 16.92 per cent to Rs 3.12 lakh crore, compared with Rs 3.75 lakh crore in the previous year, contributing to higher net collections. Net corporate tax collections rose to Rs 8.63 lakh crore, while net non-corporate tax collections increased significantly to Rs 9.30 lakh crore. Securities Transaction Tax (STT) collections remained stable at around Rs 44,867 crore, while collections from other taxes were marginal during the period.

Budget 2026 Expectations and Fiscal Outlook

Earlier, in an email interview with ANI, Sonal Badhan, Economist at Bank of Baroda said the Union Budget 2026 is likely to set 8.5-9% growth for next year and increase capital expenditure to Rs 12-12.2 lakh crores.

"We expect the government to meet its fiscal deficit target of 4.4% for the Financial Year 2026 (FY26). For next year, we estimate that the deficit ratio will be lowered by 30-40bps (4-4.1%). Capex allocation will be of key interest. In the ongoing fiscal year, the government has already met approximately 60% of the budgeted target till Nov'25," the BoB Economist said. (ANI)

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