RAS question
By what percentage did India's net direct tax collection grow in FY2025-26 as of March 17, 2026?
Correct answer: (B) 7.19%.
India's net direct tax collection grew by 7.19% year-on-year in FY2025-26 as of March 17, 2026.
Explanation
As of March 17, 2026, India's net direct tax collections for FY2025-26 stood at Rs 22.80 lakh crore, a 7.19% year-on-year rise. The cited report says the collections are measured after refunds and are based on Income Tax Department data for the period from April 1, 2025 to March 17, 2026. The rise was supported by higher corporate tax collections and higher non-corporate tax collections, including personal income tax. Corporate tax collections grew faster, while non-corporate tax collections also remained above the previous year's level. Since the question asks for the net direct tax collection growth rate, the precise answer is 7.19%, not the rounded headline figure of 7.2%.
Why the other options are wrong
- (A) 5.50% is too low; the cited net direct tax growth rate as of March 17, 2026 was 7.19% year-on-year.
- (C) 9.00% overstates the net direct tax growth rate; the report gives 7.19% for net collections after refunds.
- (D) 11.20% is not the reported net direct tax growth rate; the source links the net collection increase to 7.19%, with corporate and non-corporate taxes rising by their own separate rates.
Concept
This tests fiscal indicators under Indian Economy, especially the distinction between gross and net tax collections. RAS often asks such current-economy figures because direct tax trends signal revenue buoyancy and the composition of government receipts.