Net direct tax collection up 5% in FY26, misses target

NEW DELHI: Government’s net direct tax collections grew 5.1% to over Rs 23.4 lakh crore in 2025-26, but missed the revised target set for the fiscal year that ended March 2026.In the revised estimates (RE) for the 2025-26 fiscal, govt lowered the direct tax collection target to Rs 24.2 lakh crore. The original budget estimate was set at Rs 25.20 lakh crore. Subdued direct tax collection in FY26 follows the income tax cuts that were announced in the 2025-26 Budget on Feb 1, 2025.The net corporate tax mop-up in FY26 grew 11.4% to just under Rs 11 lakh crore. Non-corporate tax collection was flat at over Rs 11.8 lakh crore. The securities transaction tax (STT) collection was up 7.9% at Rs 57,522 crore, according to the data released by CBDT.Refund issuance dipped 1.1% year-on-year to just over Rs 4.7 lakh crore in 2025-26.Gross direct tax collection during the recently concluded fiscal stood at about Rs 28.1 lakh crore, up 4% from the 2024-25 fiscal.