India’s net direct tax collections rise 9.4% on year in April–Feb of FY26

Net direct tax collections in the current financial year rose 9.4% year-on-year to ₹19.43 lakh crore as of February 10, indicating steady momentum in revenue mobilisation compared with the same period last year. The growth reflects sustained improvement in tax compliance and underlying economic activity during the ongoing fiscal.

According to a statement by the income tax department, gross direct tax collections between April 1 and February 10 stood at ₹22.8 lakh crore, about 4.1% higher than a year earlier. India’s financial year runs from April to March. Direct taxes mainly comprise corporate tax and personal income tax, while refunds worth ₹3.3 lakh crore were issued during the period.

Data up to January showed a similar trend. Net direct tax collections rose 8.82% year-on-year to ₹18.38 lakh crore between April 1 and January 11. This included corporate tax collections of ₹8.63 lakh crore and non-corporate tax collections of ₹9.39 lakh crore. Total refunds issued during this period amounted to ₹3.11 lakh crore, down 16.92% compared with the same period last year.

The tax mop-up also comprised net corporate tax collections of over ₹8.63 lakh crore and taxes from non-corporate entities, including individuals and Hindu Undivided Families (HUFs), of around ₹9.30 lakh crore. Securities Transaction Tax (STT) collections stood at ₹44,867 crore between April 1 and January 11, while gross direct tax collections during this period rose 4.14% to about ₹21.50 lakh crore.

For the current fiscal year 2025–26, the government has projected direct tax collections at ₹25.20 lakh crore, representing a year-on-year increase of 12.7%. STT collections are estimated at ₹78,000 crore for the full year.

Budget allocations

Separately, responding to claims that certain states were denied Budget allocations, Union Finance Minister Nirmala Sitharaman cited the report of the 16th Finance Commission. She said the Commission analysed the transfer of states’ share from the Centre between 2018–19 and 2022–23 and concluded that in each of these years, the devolution made by the Centre fully matched the Commission’s recommendations. She emphasised that the findings were based on a detailed examination by the constitutional body itself, leaving no scope for doubt on the issue.