- Income tax is projected to contribute 32% of the Centre's tax revenues in FY26
- Individuals and households are expected to pay Rs 13.6 lakh crore in income tax
- GST is the second-largest revenue source, accounting for 27.6% of total tax receipts
Income tax is projected to remain the single largest contributor to the Centre's tax revenues in FY26, accounting for 32% of total collections, according to budget estimates. Individuals and households are expected to contribute Rs 13.6 lakh crore, underscoring the growing role of personal incomes in funding government expenditure.
Goods and Services Tax (GST) follows closely as the second-largest revenue stream, contributing 27.6% of total tax receipts. GST collections are budgeted at Rs 11.8 trillion, reflecting the tax's central role in India's consumption-led revenue framework.
Together, income tax, GST and corporate tax form the primary revenue pillars, contributing over 85% of total tax receipts.
Excise duty and customs account for a combined 13% of tax revenues, representing the impact of manufacturing- and trade-linked levies. Within this segment, excise duty is estimated at Rs 3.2 lakh crore (7.4%), customs duty at Rs 2.4 lakh crore (5.6%), while other taxes contribute Rs 0.9 lakh crore (2.2%).
The projected tax mix reflects a continued shift towards direct taxes and consumption-linked revenues, while reliance on trade and manufacturing levies remains relatively lower in comparison.
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