8.8% Rise in India’s Direct Taxes Reflects Economic Strength

Reflecting the underlying strength of the Indian economy, direct tax mop-ups have increased by 8.8% in the current fiscal year (FY26). Significant contributions from the services sector and manufacturing have bolstered corporate tax receipts, while rising income levels have pushed individual tax filings higher. This steady increase in tax buoyancy demonstrates the efficiency of the modern Indian tax administration and the growing formalization of the economy.