Net direct tax collections for FY26 rose 9.4% year-on-year to ₹19.43 lakh crore as of February 10, according to data released by the Income Tax Department on Wednesday. The increase points to steady revenue mobilisation, supported by improving compliance and stable economic activity.
Corporate tax remained the key driver, with net collections rising 14.51% to ₹8.90 lakh crore during the period. Collections from non-corporate taxpayers — including individuals, Hindu Undivided Families (HUFs), firms and other entities — grew 5.91% to around ₹10.03 lakh crore, reflecting resilient personal income tax receipts.
Securities Transaction Tax (STT) collections stood at ₹50,279 crore between April 1 and February 10, broadly flat compared with the same period last year, indicating stable equity market activity.
On the refunds front, the government paid out ₹3.34 lakh crore during the period, down 18.82%, which supported higher net collections by limiting outflows.
On a gross basis, direct tax collections — before adjusting for refunds — increased 4.09% to ₹22.78 lakh crore till February 10. This included gross corporate tax revenue of ₹10.88 lakh crore and gross non-corporate tax revenue of ₹11.39 lakh crore.
The sustained rise in direct tax receipts reflects stronger compliance amid policy measures aimed at widening the tax base and leveraging data analytics to enhance enforcement. With only weeks left in the financial year, final outcomes will hinge on March collections.
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Rohinton Sidhwa, Partner, Deloitte India, said: “Both corporate and non-corporate taxes are showing flat growth over the previous year. While the revised estimates increased the corporate tax target marginally, the estimate for non-corporate taxes was reduced by 8%. Consequently, it is largely the moderation in refunds that supports higher net tax collections compared to last year. It is important to note that there is usually a surge in tax collections in March, which may still help the Government meet the revised estimate targets.”
