India’s net direct tax collections grew 5.12% year-on-year to Rs 23.40 lakh crore in FY26, but came in below the revised target for the fiscal year ended March 2026.
In the revised estimates, the government had lowered the direct tax collection target to Rs 24.21 lakh crore from the original budget estimate of Rs 25.20 lakh crore.
The relatively subdued growth in collections is attributed to income tax cuts announced in the Union Budget 2025-26, presented on February 1, 2025.