New Delhi, Dec 19 (IANS) India’s net direct tax collections recorded an 8 per cent growth to Rs 17.05 lakh crore so far in the current financial year (2025-26), on the back of a steady growth in corporate tax receipts, according to figures released by the Income Tax Department on Friday.

Net direct tax collections between April 1 and December 17, 2025 touched Rs 17,04,725 crore, compared with Rs 15,78,433 crore in the same period of the previous year. Gross direct tax collections grew 4.16 per cent year-on-year to Rs 20,01,794 crore.

Corporate tax collections were the biggest contributor, with net corporate tax rising to Rs 8,17,310 crore, from Rs 7,39,353 crore a year ago. Net non-corporate tax collections, which include taxes paid by individuals and other entities such as Hindu undivided families, increased to Rs 8,46,905 crore from Rs 7,96,181 crore.

Tax refunds issued during the April-December by the Income Tax Department, declined by 13.52 per cent to Rs 2,97,069 crore, from Rs 3,43,499 crore in the same period of the previous year.

Securities transaction tax collections posted a flat growth at around Rs 40,195 crore, while the share of “other” taxes in the total collection fell during this period.

Advance tax collections have also clocked a robust growth with Corporate advance tax increased nearly 8 per cent to Rs 6,07,300 crore. Total advance tax paid has gone up by 4.27 per cent to Rs 7,88,388 crore so far in the current financial year. However, advance tax contributions by non-corporate taxpayers declined by 6.49 per cent to Rs 1,81,088 crore during this period.

The government has set a target of Rs 25.20 lakh crore in direct tax collections, representing a 12.7 per cent increase over the previous year.

Finance Minister Nirmala Sitharaman had announced significant income tax relief measures to put more money in the hands of the middle-class to increase the demand for goods and services in the economy to spur growth. For individuals in the new tax regime, salaried taxpayers can have an income of up to Rs 12.75 lakh with zero tax liability due to an increased standard deduction of Rs 75,000.

The limits for Tax Deducted at Source (TDS) have also been raised for various sections, such as on interest for senior citizens to Rs 1 lakh from Rs 50,000 and on rent to Rs 6 lakh annually from Rs 2.40 lakh.

–IANS

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