India Business Journal - Corporate Tax collections race past personal Income Tax mop-up in FY26 so far

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Corporate Tax collections race past personal Income Tax mop-up in FY26 so far

IBJ Bureau
Dec 21, 2025

Corporation Tax collections have overtaken personal Income Tax receipts so far during this financial year, underlining stronger corporate earnings even as individual tax growth remains muted. Gross direct tax collections have risen by 4.2 per cent year-on-year (YoY) till mid-December, with the overall tax kitty crossing Rs 20 lakh crore, according to the latest data from the Income Tax Department.

Figures released on Friday show Corporation Tax collections at Rs 9.94 lakh crore as of December 17, marking a 7.5 per cent increase from those a year earlier. In comparison, non-Corporate Tax collections, largely personal Income Tax, have grown by just 1.3 per cent to Rs 9.67 lakh crore during the same period.

The sharper rise in Corporate Tax has put it ahead of personal Income Tax receipts, even as the slower growth in non-Corporate Taxes has dragged down the pace of overall gross direct tax collections to 4.2per cent till mid-December.

The divergence has become more evident after the third instalment of advance tax payments. Non-corporate advance tax payments have declined by 6.5 per cent YoY to Rs 1.8 lakh crore, while advance Corporation Tax collections have risen by 8 per cent to a little under Rs 6.1 lakh crore.

“Overall, the corporate advance tax increase signals good corporate earnings. Non-corporate advance tax collections have... declined, possibly on the back of rate cuts for individuals given in the previous Budget,” Rohinton Sidhwa, a partner at consulting firm Deloitte India, has said.