India’s net direct tax collections increased 13.21 percent year on year to ₹13.38 lakh crore as of October 14, 2026, according to data released by the Income Tax Department. The figures indicate higher tax receipts during the first part of the 2026–27 financial year, even as refunds issued to taxpayers increased at a faster rate than net collections.
Net direct tax receipts stood at ₹13,37,866.98 crore, compared with ₹11,81,786.98 crore during the corresponding period of the previous financial year. Gross direct tax collections, measured before refunds, rose 14.89 percent to ₹16,03,066.12 crore from ₹13,95,278.39 crore a year earlier. However, refunds increased 24.22 percent to ₹2,65,199.14 crore, moderating the growth in net receipts.
Gross Tax Collections Record Strong Growth
Gross direct tax collections represent the total amount collected before refunds are deducted. Net collections show the amount remaining after refunds have been accounted for.
The latest figures show that gross collections grew faster than net collections during the period. While gross receipts increased by 14.89 percent, net collections rose by 13.21 percent. The difference reflects the effect of higher refunds paid during the period.
The data covers cumulative receipts from April 1 to October 14, 2026, rather than collections for October alone. It provides an update on the central government’s direct tax revenue during the ongoing financial year.
Corporate Tax Collections Increase
Corporate tax collections made a significant contribution to the overall increase. Net corporate tax receipts reached ₹5,99,062.48 crore as of October 14, compared with ₹4,96,798.62 crore during the same period last year. This represents growth of approximately 20.57 percent.
Gross corporate tax collections increased to ₹7,52,961.56 crore from ₹6,43,721.45 crore in the corresponding period of the previous financial year. Corporate tax refunds also increased, reaching ₹1,53,899.08 crore, compared with ₹1,46,922.83 crore a year earlier.
The increase in corporate tax receipts contributed to the rise in total direct tax revenue. However, collection figures alone do not establish the reasons behind the increase, which may depend on several factors, including company earnings, tax payments and the timing of payments.
Non-Corporate Tax Receipts Also Rise
Net non-corporate tax collections increased to ₹6,91,965.71 crore from ₹6,53,804.16 crore in the year-ago period. The increase was approximately 5.84 percent.
This category includes taxes paid by individuals, Hindu Undivided Families, firms, associations and other non-corporate entities. It represents a major component of the country’s direct tax receipts alongside corporate tax.
Gross non-corporate tax collections rose to ₹8,03,245.26 crore, compared with ₹7,20,353.91 crore during the corresponding period last year. Refunds in this category increased substantially to ₹1,11,279.55 crore from ₹66,549.75 crore.
The figures show that non-corporate gross collections increased, but the rise in refunds affected the amount retained as net revenue.
Securities Transaction Tax Collections Surge
Collections from the Securities Transaction Tax, or STT, recorded another notable increase. Net STT receipts reached ₹46,840.43 crore as of October 14, compared with ₹30,901.81 crore in the corresponding period of the previous financial year. This represents an increase of approximately 51.58 percent.
STT is levied on specified transactions involving securities carried out through recognised stock exchanges and other covered transactions under the applicable rules. Its collections can vary with trading activity, transaction values and market conditions.
The increase in STT receipts contributed to the overall growth in direct tax collections. However, the figures do not, by themselves, establish that stock market performance alone was responsible for the rise.
Why Tax Refunds Matter
Tax refunds are payments made by the tax department when taxpayers are entitled to receive money back, for example, when taxes paid or deducted exceed their final tax liability.
The total value of refunds rose to ₹2,65,199.14 crore during the period, compared with ₹2,13,491.41 crore in the previous year. The 24.22 percent increase was higher than the growth recorded in gross collections.
Higher refunds reduce the difference between gross and net receipts. Therefore, the increase in net direct tax collections was lower than the increase in gross collections during the period.
Refunds are an important part of the tax administration process and should not automatically be interpreted as a decline in tax compliance. Their level can depend on claims filed, tax assessments, processing and payment schedules.
What the Figures Mean for Government Revenue
Direct taxes are an important source of revenue for the central government. They include corporate taxes and taxes on income paid by individuals and other entities, along with applicable securities transaction taxes.
These receipts help finance public expenditure, infrastructure development, welfare programmes and government services. Stronger collections can support revenue planning, although the impact on the government’s overall fiscal position also depends on expenditure, borrowing, indirect taxes and other receipts.
The latest figures show that net direct tax collections were higher than in the corresponding period of the previous financial year. Corporate tax and securities transaction tax receipts recorded particularly strong growth, while non-corporate tax collections also increased.
At the same time, the increase in refunds highlights why gross and net collections need to be considered together when assessing the tax revenue trend.
Outlook for FY2026–27
The October 14 figures provide a snapshot of direct tax performance during the financial year’s opening months. Collections may change as additional tax payments become due, refunds are processed and the department publishes updated figures.
The trend over the remaining months will be important in assessing whether the current pace of growth continues. Corporate earnings, individual income, compliance levels, payment schedules and refund processing may all influence subsequent data.
For now, the Income Tax Department’s figures show net direct tax collections rising 13.21 percent to ₹13.38 lakh crore, while gross receipts increased 14.89 percent and refunds grew 24.22 percent. The next updates will provide a clearer picture of how direct tax revenue progresses through FY2026–27.
