Direct tax collections increase 7% on year

Nearly half the required rate to meet BE

- FE BUREAU

THE CENTRE'S DIRECT tax collections — before devolution to states — are trailing behind the pace estimated in the Budget for FY26, raising concerns that receipts could fall short of the annual target.

As of November 10, 2025, gross direct tax collections grew just 7% year-on-year, compared with a budgeted growth target of 13.2% over FY25 actuals.

Corporate tax receipts have risen by 5.7% against the projected 10%, while income tax collections have grown 7.9%, far below the ambitious 21.6% target set in the Budget.