Direct Tax Performance in FY 2025–26: Provisional CBDT Data Analysed

The Central Board of Direct Taxes (CBDT) has released provisional figures for direct tax collections up to 31.03.2026 for the financial year 2025–26. These numbers point to a measured but positive rise in overall direct tax revenues, with notable variation across different tax categories such as Corporation Tax (CT), Non-Corporate Tax (NCT), Securities Transaction Tax (STT), and Other Taxes (OT).

This analysis breaks down the data head-wise, compares it with FY 2024–25, and highlights key tax policy and compliance implications for the assessee community.

Overall Trajectory of Direct Tax Collections

Net vs Gross Collections: FY 2025–26 Compared with FY 2024–25

As per the provisional figures:

  • Net direct tax collections increased from Rs. 22,26,375 crore in FY 2024–25 to Rs. 23,40,406 crore in FY 2025–26.
  • This reflects a growth of 5.12% in net collections.
  • Gross direct tax collections moved from Rs. 27,03,107 crore to Rs. 28,11,936 crore, registering a 4.03% rise.
  • Total refunds issued during the year reduced slightly from Rs. 4,76,732 crore to Rs. 4,71,531 crore, a decline of 1.09%.

The combination of higher gross collections and marginally lower refunds has resulted in net collections growing faster than gross collections. This indicates both sustained revenue mobilisation and potentially tighter refund outflows.

Note: All figures for FY 2025–26 are provisional and sourced from Pr.CCA (CBDT). Final reconciled numbers may undergo adjustments at a later stage.

Segment-wise Performance of Direct Taxes

Corporation Tax (CT): Key Driver of Growth

Corporation Tax has been the most prominent contributor to the improvement in direct tax receipts.

  1. Gross Corporation Tax (CT) collections:

    • FY 2024–25: Rs. 12,72,542 crore
    • FY 2025–26: Rs. 13,81,606 crore
    • This represents a substantial increase in absolute terms.

  2. Net Corporation Tax (CT) collections:

    • FY 2024–25: Rs. 9,86,767 crore
    • FY 2025–26: Rs. 10,99,166 crore

The robust increase at both the gross and net levels suggests:

  • Enhanced profitability across a broad base of corporates,
  • Better compliance or improved enforcement measures,
  • Possible impact of economic recovery in specific sectors contributing to higher advance tax and self-assessment tax payments.

From a policy and compliance standpoint, this upward movement in CT collections may also reflect the cumulative impact of earlier reforms in corporate taxation and digital compliance frameworks.

Non-Corporate Tax (NCT): Largely Flat Movement

Non-Corporate Tax (NCT) has shown a more subdued pattern.

NCT includes taxes paid by:

  • Individuals
  • Hindu Undivided Families (HUFs)
  • Firms
  • Associations of Persons (AoPs)
  • Bodies of Individuals (BoIs)
  • Local Authorities
  • Artificial Juridical Persons

NCT – Gross vs Net

  • Gross NCT collections:

    • FY 2024–25: Rs. 13,73,905 crore
    • FY 2025–26: Rs. 13,72,474 crore
    • This indicates a marginal decline at the gross level.

  • Net NCT collections:

    • FY 2024–25: Rs. 11,82,972 crore
    • FY 2025–26: Rs. 11,83,405 crore
    • Net collections have inched up only slightly, pointing to almost flat growth.

This near-stagnant movement in NCT suggests: