India’s net direct tax collections up 8% in FY26 till December 17

India’s net direct tax collections reached Rs 1,70,4725 crore as of December 17, 2025, marking an 8 per cent increase over the same period last year, according to data released by the Income Tax Department.

Gross collections for the period stood at Rs 20,01,794 crore, up 4.16 per cent from Rs 19,21,932 crore in FY25. Refunds issued during the period declined 13.52 per cent, totalling Rs 2,97,069 crore compared with Rs 3,43,499 crore last year, contributing to the higher net collection.

Corporate and non-corporate tax contributions

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Corporate tax collections increased from Rs 7,39,353 crore last year to Rs 8,17,310 crore, while non-corporate tax collections rose from Rs 7,96,181 crore to Rs 8,46,905 crore.

The net collections also included Securities Transaction Tax (STT) and other taxes, which collectively amounted to Rs 40,195 crore and Rs 315 crore, respectively.

Advance tax trends

Advance tax collections for FY26 totalled Rs 7,88,388 crore, a 4.27 per cent increase over last year. Corporate advance tax rose by 7.98 per cent to Rs 6,07,300 crore, while non-corporate advance tax declined by 6.49 per cent to Rs 1,81,088 crore.

Image: Data on Gross Direct Tax (DT) collections, Refunds, Net Direct Tax (DT) collections and Advance Tax collections for FY 2025-26 as on 17.12.2025

Earlier, the government had set a target for direct tax collections to Rs 25.20 lakh crore, which would mean a rise of 12.7 per cent compared to the previous year, according to IANS.

The Finance Minister Nirmala Sitharaman spoke about the middle-class and their income tax cuts that would not only increase the purchasing power of the masses but also increase the demand for goods and services in the economy, which, in turn, would be good for growth. In the new tax regime, the salaried taxpayer can be up to Rs 12.75 lakhs without incurring any tax liability owing to the increased standard deduction of Rs 75,000.

The thresholds for Tax Deducted at Source (TDS) across different sections have been increased, for instance, for senior citizens on interest from Rs 50,000 to Rs 1 lakh and for rent from Rs 2.40 lakh annually to Rs 6 lakh.