A steady uptick in tax revenues is cheering policymakers. For FY 2025-26, India’s gross direct taxes have climbed 4.09% year-on-year to ₹22.78 lakh crore as on February 10, surpassing last year’s ₹21.88 lakh crore for the corresponding duration.
Refunds of ₹3.34 lakh crore trimmed this to a net ₹19.43 lakh crore, still boasting a 9.40% increase over the prior ₹17.76 lakh crore (post ₹4.11 lakh crore refunds).
Diving deeper, net corporate taxes amassed ₹8.89 lakh crore from ₹7.77 lakh crore, non-corporate ₹10.03 lakh crore from ₹9.47 lakh crore. STT contributed ₹50,279 crore versus ₹49,201 crore last year. Other taxes grossed ₹358.44 crore, with net at ₹326.38 crore after minor refunds.
This direct tax strength mirrors GST buoyancy: January gross collections at ₹1.93 lakh crore (up 6.2% from ₹1.82 lakh crore), April-January at ₹18.43 lakh crore (8.3% growth). January net GST rose 7.6% to ₹1.70 lakh crore, FYTD net up 6.8% to ₹15.95 lakh crore.
Such trends highlight India’s economic vitality, fueled by formalization, tech-driven compliance, and market optimism. They position the government well for capex-heavy budgets and social spending, potentially accelerating GDP growth trajectories.