India’s net direct tax collections up 7% to Rs 12.92 lakh cr on strong corporate, personal tax

India’s net direct tax collections grew 7% year-on-year between April 1 and November 10, 2025, touching Rs 12.92 lakh crore, driven by robust corporate tax inflows and expanding individual taxpayer contributions, according to data released by the Central Board of Direct Taxes (CBDT). The uptick underscores healthy corporate profitability, rising income levels, and improved compliance despite a challenging global environment.

Gross direct tax collection before refunds stood at Rs 15.35 lakh crore, up 2.15% from Rs 15.02 lakh crore in the same period last year. However, refund issuances dropped sharply by 18% to Rs 2.42 lakh crore, compared with Rs 2.95 lakh crore a year earlier, helping push up net collections.

Corporate tax leads the rise

Corporate tax collections continued to show resilience, reflecting strong earnings momentum among India’s top companies. Net corporate tax mop-up stood at ₹5.37 lakh crore, higher than ₹5.07 lakh crore in the corresponding period last year. Gross corporate tax collections rose from ₹6.60 lakh crore to ₹6.91 lakh crore, indicating sustained profitability despite global headwinds and a volatile currency environment.

Personal income tax collection gains pace

The non-corporate or personal income tax segment — which includes taxes paid by individuals, Hindu Undivided Families (HUFs), and partnerships — has emerged as a key growth driver. Net personal income tax collections jumped 17.7% to Rs 7.19 lakh crore, compared with Rs 6.61 lakh crore a year ago. Gross personal income tax rose marginally from Rs 8.03 lakh crore to Rs 8.08 lakh crore.

The steady rise in non-corporate taxes highlights the broadening taxpayer base, higher advance tax payments, and greater reporting transparency following digitalisation measures and compliance drives by the Income Tax Department.

STT remains stable

The Securities Transaction Tax (STT) collection during the period was ₹35,682 crore, marginally lower than ₹35,923 crore in the year-ago period. Analysts said the flat trend reflects a sideways equity market, though the surge in IPO activity could boost STT inflows in the coming months.

Experts see resilience and reform-driven growth

Commenting on the data, Rohinton Sidhwa, Partner at Deloitte India, said: “Non-corporate tax collections have kept pace despite the significant rate cut last year. This shows stronger income growth and better compliance. Refunds have declined notably, while STT collections remain steady, reflecting range-bound markets.”

For the current fiscal year, the government has projected direct tax collections at ₹25.2 lakh crore, marking a 12.7% growth target over FY25. Within this, corporate tax and personal income tax are expected to contribute a near-even split, underscoring balanced growth between business and individual earnings. The government has also set a target of ₹78,000 crore in STT collections for FY26.

What’s driving the tax buoyancy?

Experts attribute the momentum in direct taxes to multiple structural factors — steady corporate earnings, improved reporting, formalisation of the economy, and greater compliance through technology. With tax collection growth outpacing nominal GDP expansion, analysts say the fiscal outlook for the year remains positive.

Despite global uncertainties, India’s direct tax performance signals resilience in domestic economic fundamentals — supported by corporate profits, job creation, and a widening tax net — reinforcing confidence in the country’s fiscal trajectory.