India’s Direct Tax Collection Hits ₹6.64 Lakh Crore in FY26, Up 3.2%

India’s direct tax revenues have grown steadily in the ongoing financial year, with gross collections reaching ₹6.64 lakh crore so far in FY 2025-26—a 3.2% year-on-year increase, as per Central Board of Direct Taxes (CBDT) data. This figure surpasses the ₹6.44 lakh crore collected during the same period in the previous year.

Corporate Taxes and STT Drive Growth

Direct taxes, such as income tax, corporate tax, and securities transaction tax (STT), are payments made directly to the government by both individuals and companies. However, some smaller tax categories, like wealth tax, saw a major drop—from ₹1,422 crore last year to just ₹273 crore this year.

Net Collections Rise Despite Higher Refunds

With refunds rising sharply by 38.01%, the net direct tax collection so far has reached ₹1.01 lakh crore. Despite issuing more refunds this year, the government has still managed to collect more than last year, showing overall tax growth.

Positive Signs for India’s Fiscal Health

This rise in tax collections is good news for India’s financial position. It strengthens the government’s income and reduces the need for heavy borrowing. This also reflects that India’s economy is holding up well, even with ongoing global challenges. With higher tax revenues, the government may be able to invest more in public infrastructure, social programmes, and development projects, which could further boost economic growth in the coming months.