Overview
- Citing CBDT data released Monday, the government reported net direct tax collections of ₹23.40 lakh crore for FY26, a five‑year low growth of about 5% and a shortfall of ₹80,594 crore versus the revised ₹24.21 lakh crore goal.
- Corporate tax was the bright spot at ₹10.99 lakh crore with 11.4% growth, while non‑corporate receipts led by personal income tax totaled ₹11.83 lakh crore and barely grew, far under the ₹13.12 lakh crore revised target.
- Experts linked the slowdown in individual taxes to 2025 reforms that expanded the Section 87A rebate to effectively exempt many incomes up to about ₹12 lakh, raised the standard deduction to ₹75,000, and lifted TDS thresholds, which lowered withholding during the year.
- Refunds issued were ₹4.71 lakh crore, a touch below last year, and securities transaction tax brought in ₹57,522 crore, slightly higher than a year ago.
- The FY27 direct tax target stands at ₹26.97 lakh crore, which implies roughly 15.2% growth from FY26 and could constrain fiscal room if personal tax momentum stays weak.