Indias Net Direct Tax Collections In FY26 Rise, Grow 8.82% To Rs 18.38 Lakh Crore Till Jan 11

New Delhi: India’s net direct tax collections for the financial year 2025–26 recorded strong growth of 8.82%, 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.

Gross direct tax collections stood at Rs 21.50 lakh crore, marking a 4.14% 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.

Refunds issued during the period declined sharply by 16.92% to Rs 3.12 lakh crore from 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.

The Union Budget 2026 will be presented on February 1. Earlier, in an email interview with ANI, Sonal Badhan, Economist at Bank of Baroda, said the Union Budget 2026 is likely to target 8.5–9% growth next year and increase capital expenditure to Rs 12–12.2 lakh crore.

“We expect the government to meet its fiscal deficit target of 4.4% for FY26. For next year, we estimate the deficit ratio will be lowered by 30–40 basis points to 4–4.1%. Capital expenditure allocation will be of key interest. In the ongoing fiscal year, the government has already met around 60% of the budgeted target till November 2025,” the BoB economist said.