Direct tax collections rise 2.36% in FY26 so far; Corporate Tax leads growth, refunds slow down

New Delhi [India], October 14 (ANI): The gross direct tax collection of the Central government has increased by 2.36 per cent so far in the current financial year (as of October 12, 2025), compared to the same period last year, according to data released by the Income Tax Department.

As per the official data, the total gross collection during April 1-October 12, 2025, stood at Rs 13,92,161.49 crore, up from Rs 13,60,027.21 crore collected during the same period last year. This reflects a steady rise in collections and a moderate pace in refunds this year.

The data showed that gross corporate tax collection has risen to Rs 6,42,658.28 crore so far in FY26, which is around Rs 30,000 crore higher than the previous year's figure of Rs 6,12,579.32 crore.

The non-corporate tax collection, which includes taxes paid by individuals, HUFs, firms, and local authorities, has also shown a mild increase, reaching Rs 7,18,323.63 crore from Rs 7,14,637.56 crore last year.

However, the pace of tax refunds has slowed down significantly this year. The total refunds issued up to October 12, 2025, amounted to Rs 2,03,107.32 crore, marking a 15.98 per cent decline compared to Rs 2,41,748.88 crore in the same period of FY25.

Notably, non-corporate tax refunds have seen a sharper fall, dropping to Rs 62,359.29 crore this year from Rs 1,20,939.70 crore last year, indicating a delay in refund processing for individual and small business taxpayers.

After adjusting for refunds, the net direct tax collection for FY26 stood at Rs 11,89,054.17 crore, representing a 6.33 per cent growth over the Rs 11,18,278.33 crore collected during the corresponding period last year.

The data highlights that while the overall direct tax collections continue to grow steadily, the slowdown in refund disbursals, especially in the non-corporate segment, has contributed to a higher net revenue inflow for the government. (ANI)

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