India’s Net Direct Tax Collections Rise 7% YoY to Rs 12.92 Lakh Crore by November 10

India’s direct tax kitty continues to show resilience, with net collections touching Rs 12.92 lakh crore for FY2025-26 as of November 10, reflecting a 7% year-on-year (YoY) growth, according to provisional data released by the Ministry of Finance on Tuesday.

The gross direct tax collection stood at Rs 15.35 lakh crore, up 2.15% from the same period last year, underscoring steady performance despite global economic headwinds and uneven corporate profitability.

A notable factor contributing to the net increase is the 17.72% decline in total tax refunds, which amounted to Rs 2.42 lakh crore during the period under review. The moderation in refunds suggests improved efficiency in tax collection and assessment, although it also signals tighter cash flows for certain taxpayers.

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Breaking down the data, corporate tax continues to contribute a major share of the government’s revenue. The gross corporate tax collection rose to Rs 6.91 lakh crore, with refunds totaling Rs 1.54 lakh crore, resulting in a net corporate tax collection of Rs 5.37 lakh crore.

On the other hand, non-corporate tax (NCT) — which includes taxes paid by individuals, Hindu Undivided Families (HUFs), firms, Associations of Persons (AoPs), Bodies of Individuals (BoIs), and other entities — saw robust performance. The gross NCT collection stood at Rs 8.08 lakh crore, while refunds of Rs 88,000 crore brought the net NCT to Rs 7.19 lakh crore.

With the current pace, the government appears on track to meet or exceed its FY26 direct tax collection targets, driven by a buoyant economy, formalization of income, and improved compliance aided by digital tax administration systems.