Direct Tax Collections Rise 5.12% to ₹23.4 Lakh Crore, Miss Revised Target

India’s net direct tax collections grew by 5.12% to over ₹23.40 lakh crore in the financial year 2025-26, but fell short of the revised target set by the government.

The revised estimate for FY26 had pegged direct tax collections at ₹24.21 lakh crore, lower than the original budget estimate of ₹25.20 lakh crore.

The shortfall is largely attributed to income tax cuts announced in the Union Budget on February 1, 2025, which impacted overall revenue growth.

Despite the miss, the moderate rise in collections reflects steady tax buoyancy amid policy adjustments aimed at boosting disposable income and consumption.