Net direct tax collections in FY26 so far have fallen to ₹6.64 lakh crore

Current Context: As of August 12, 2025, net direct tax collections for FY26 have fallen to ₹6.64 lakh crore, marking a 3.95% decline from ₹6.91 lakh crore in the same period last year.

• This drop is primarily driven by a 10% year-on-year increase in refunds to ₹1.35 lakh crore and delays in personal income tax filings.
• Corporate tax collections rose by 3% to ₹2.29 lakh crore, while non-corporate tax collections saw a sharper decline of 7.45% to ₹4.12 lakh crore.
• The Securities Transaction Tax contributed ₹22,362 crore, and gross collections before refunds were ₹7.99 lakh crore, down 1.87% year-on-year.
• The government’s FY26 target of ₹25.20 lakh crore, requiring 12.7% annual growth, looks ambitious given the current trajectory.

Question:

Q.1 As of August 12, 2025, what is India’s net direct tax collection for FY26?
a) ₹6.91 lakh crore
b) ₹6.64 lakh crore
c) ₹7.99 lakh crore
d) ₹4.12 lakh crore

Answer: b) Net direct tax collections stood at ₹6.64 lakh crore, which is 3.95% lower than ₹6.91 lakh crore collected in the same period last year.