India has reported an 8.8% increase in direct tax collections so far in FY26, signaling a stable fiscal trajectory. This growth is attributed to the success of reforms like the faceless assessment system and the expansion of the Tax Deducted at Source (TDS) net. With collections outpacing several early projections, the government is well-positioned to meet its annual revenue targets, reducing the need for additional market borrowing and supporting the nation’s fiscal deficit targets.
