Net Direct Tax Collections Rise 5.1 pc in FY26; Refunds See Marginal Decline

New Delhi, May 5 (BNP): India’s net direct tax collections recorded steady growth in FY26, rising 5.12% year-on-year to ₹23.40 lakh crore, compared with ₹22.26 lakh crore in the previous financial year.

The increase reflects combined collections from corporate and non-corporate taxes, indicating continued expansion in the tax base despite challenging global and domestic economic conditions.

During the same period, tax refund outgo declined slightly by 1.09% to ₹4.71 lakh crore, suggesting relatively stable refund requirements compared to the previous year.

However, overall collections fell short of the revised budget estimate for FY26, highlighting moderation in revenue growth momentum.

The data underscores a stable yet slower-than-expected growth trajectory in direct tax mobilisation for the fiscal year.