India’s net direct tax collections have recorded healthy growth in the current financial year up to mid-January. According to the Income Tax Department, the collection grew 8.82 per cent to over 18.38 lakh crore rupees upto 11th of this month. The increase has been driven by steady corporate tax receipts of 8.63 lakh crore rupees and strong contributions from individual taxpayers. Collections from the Securities Transaction Tax also indicate sustained activity in the capital markets. During the same period, tax refunds declined by 17% year-on-year, supporting the rise in net collections. Overall, gross direct tax increased 4.14%, showing positive growth so far this fiscal.

For the 2025-26 financial year, the government has projected 12.7%  growth in direct tax collections over the previous year. The government has also set a target of 78,000 crore rupees from the Securities Transaction Tax in the Financial Year 2026.