According to official data from the Government of India, net direct tax collections have registered a strong growth so far (till February 10) in the financial year 2025-26. It has increased by 9.4 percent to Rs 19.44 lakh crore. The data indicates continued strength in the economy, improved tax compliance, rising income from individual and non-corporate taxpayers and controlled growth in refunds. This performance in the last phase of the financial year can play an important role in achieving the budget targets and strengthening the country’s fiscal position, which reflects India’s economic stability and growth momentum.
Net corporate tax collection increased by 14.51 percent
According to data released by the Income Tax Department on Wednesday, net corporate tax collection increased by 14.51 per cent to Rs 8.90 lakh crore. At the same time, non-corporate tax, which includes individual taxpayers and Hindu Undivided Families (HUF), increased by 5.91 percent and stood at about Rs 10.03 lakh crore. Securities Transaction Tax or STT collection stood at Rs 50,279 crore between April 1 and February 10, which is almost stable compared to the same period last year.
What was the gross direct tax collection?
Tax refunds witnessed a decline of 18.82 per cent and stood at Rs 3.34 lakh crore. Gross direct tax collection increased by 4.09 percent to Rs 22.78 lakh crore during this period. In this, gross corporate tax and non-corporate tax were Rs 10.88 lakh crore and Rs 11.39 lakh crore respectively. The government has estimated the direct tax collection to reach Rs 24.84 lakh crore in the Revised Estimates for the current financial year 2025-26.
What is direct tax?
Direct tax is a type of tax, which is imposed directly on the taxpayer and the taxpayer pays it directly to the government. This tax is imposed on the persons (individual or legal) to whom it applies. The special thing about direct tax is that the taxpayer cannot pass this tax on anyone else. That is, this tax is completely borne by the taxpayer and cannot be transferred to any other person or organization. For example, income tax, wealth tax and corporate tax are major examples of direct taxes. This tax system provides an effective means of raising revenue directly to the government and is applied on the basis of the income or wealth of the taxpayer.
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