Direct tax collections rise over 7pc in FY26; advance tax growth remains strong: Govt

India’s direct tax collections have shown steady growth in FY26, with net collections rising by 7.19% as of March 17, 2026, driven by robust corporate tax inflows and higher advance tax payments.

According to the latest data, net direct tax collections for FY 2025-26 stood at Rs 22,80,236.73 crore, compared to Rs 21,27,375.42 crore in the same period last year. Gross collections also registered a healthy increase of 4.86 per cent, reaching Rs 27,14,748.29 crore.

Corporate tax collections remained a key contributor, rising to Rs 10,91,801.32 crore in net terms, up from Rs 9,68,271.99 crore a year ago.

Non-corporate tax collections, which include taxes paid by individuals and other entities, also showed growth, climbing to Rs 11,32,394.07 crore.

However, refunds issued during the period declined by 5.86 per cent to Rs 4,34,511.56 crore, compared to Rs 4,61,573.72 crore in the previous year, supporting higher net collections.

Advance tax collections also reflected continued economic momentum. Total advance tax receipts grew by 6.42 per cent to Rs 11,13,106.15 crore.

Within this, corporate advance tax rose sharply by 9.54 per cent to Rs 8,29,877.61 crore, indicating improved profitability and compliance among companies.

In contrast, advance tax collections from non-corporate taxpayers saw a marginal dip of 1.78 per cent, standing at Rs 2,83,228.54 crore.

The data points to sustained strength in tax buoyancy, with corporate earnings and compliance playing a crucial role, even as individual tax contributions show mixed trends.

The overall rise in collections underscores stable revenue generation for the government in the ongoing fiscal year.