tax collection
A strong increase has been recorded in the direct tax collection of the government in the current financial year 2025-26. As of February 10, net direct tax collection has increased by 9.4% to Rs 19.43 lakh crore. This is a significant increase compared to the same period last year and indicates that tax compliance and economic activity remain stable.
Gross collection Rs 22.8 lakh crore
According to the Income Tax Department, between April 1 and February 10, the government collected a total gross direct tax of Rs 22.8 lakh crore. This figure is about 4.1% more than the same period of the last financial year. India’s financial year runs from April to March, hence this period is also considered important in terms of budget targets.
Corporate and income tax contribution
Direct taxes mainly include corporate tax and personal income tax. Experts believe that stability in corporate profits and increase in income of the salaried class have supported tax collection. Apart from this, tax compliance has also improved due to digital return filing and strict monitoring.
Refund of Rs 3.3 lakh crore issued
The government has also issued tax refunds worth Rs 3.3 lakh crore during the same period. The amount remaining after the refund is issued is considered as net tax collection. Timely processing of refunds increases taxpayer confidence and helps in making the tax system more transparent.
Important signals for fiscal balance
Strong tax collection can prove helpful in controlling the fiscal deficit of the government. The increasing direct tax collection is an indication that activities in the economy are continuing and sources of income remain strong. Overall, this trend of direct tax collection in the current financial year has brought a positive sign for the government and shows strength towards achieving the budget targets.