India’s net direct tax collection grew 9.18% to cross Rs 10.82 lakh crore till September 17 in the current financial year (2025-26), compared to the same period last year. This was due to a sharp 23.87% decline in refunds, data from the Central Board of Direct Taxes (CBDT) showed on Friday.
Non-corporate tax revenue rose 13.67% to Rs 5.83 lakh crore. This tax is paid by entities that are not registered as companies under the Companies Act. Net corporate tax collections increased 4.93% to Rs 4.72 lakh crore. Securities Transactions Tax (STT) rose slightly by 0.57% to Rs 26,305.72 crore, according to official figures.
Gross direct tax collections increased 3.39% to Rs 12.43 lakh crore, while refunds dropped 23.87% to Rs 1.60 lakh crore. Corporate refunds, which make up most of the total refunds, rose 13.13% to Rs 1.23 lakh crore. Refunds for non-corporate taxpayers fell sharply by 63.39% to Rs 37,306.72 crore.
Of the total gross direct tax collected, corporate tax accounted for Rs 5.95 lakh crore, non-corporate tax Rs 6.20 lakh crore, STT Rs 26,305.72 crore, and other taxes Rs 297.13 crore.
Meanwhile, India’s GST collections rose 6.5% to Rs 1.86 lakh crore in August, according to government data released earlier this month. GST collections have stayed above the Rs 1.8 lakh crore mark for the eighth month in a row, reflecting growing economic activity in the country.
Gross domestic revenue grew 9.6% to Rs 1.37 lakh crore, while import tax fell 1.2% to Rs 49,354 crore in August. GST refunds declined 20% year-on-year to Rs 19,359 crore. Net GST revenue reached Rs 1.67 lakh crore in August 2025, marking a strong 10.7% growth compared to last year.
Rising tax collections in recent months have strengthened India’s fiscal position and macroeconomic fundamentals, supporting stable economic growth. India’s fiscal deficit for April-July was Rs 4.68 lakh crore, or 29.9% of the estimated target for the financial year ending March 31. Next tax receipts for this period are expected to be Rs 6.6 lakh crore, showing the country is in a strong fiscal position.