Net direct taxes collection for the current financial year rose 9.4% year-on-year to Rs 19.43 lakh crore as on February 10, indicating a steady momentum in revenue mobilization compared to the same period last year. The growth reflects sustained improvement tax compliance and underlying economic activity during the current fiscal year.

According to a statement from the income tax department, gross direct tax collection between April 1 and February 10 stood at 22.8 billion rupees, up 4.1% from a year earlier. India’s financial year runs from April to March. Direct taxes mainly include corporate tax and personal income tax, while refunds worth Rs 3.3 billion were issued during the period.

Data up to January showed a similar trend. Net direct tax collection rose 8.82% year-on-year to ₹18.38 billion between April 1 and January 11. This included corporate tax collections of ₹8.63 crore and non-corporate tax collections of ₹9.39 crore. Total refunds issued during this period amounted to Rs 3.11 billion, down 16.92% compared to the same period last year.

Tax collections also included net corporate tax collections of over ₹ 8.63 lakh crore and taxes from non-corporate entities, including individuals and Hindu Undivided Families (HUFs), of around ₹ 9.30 lakh crore. The securities transaction tax (STT) collection stood at Rs 44,867 crore between April 1 and January 11, while the gross direct tax collection during this period increased by 4.14% to about Rs 21.50 crore.

For the current fiscal year 2025-26, the government has projected direct tax collections to be Rs 25.20 lakh crore, representing a year-on-year increase of 12.7%. STT’s collections are estimated at Rs 78,000 crore for the entire year.

Budget allocations

Separately, responding to claims that certain states were denied Budget allocationsUnion Finance Minister Nirmala Sitharaman cited the 16th Finance Commission report. He said the Commission analyzed the transfer of quota from the Center to the states between 2018-19 and 2022-23 and concluded that in each of these years, the refund made by the Center was fully in line with the Commission’s recommendations. He emphasized that the conclusions were based on a detailed examination by the constitutional body itself, leaving no room for doubt on the matter.