Net direct tax collections in India rose 14.64% to over Rs 5.21 lakh crore as of June 17 in the current financial year, according to government data released on Thursday. The growth was driven by robust advance tax payments from companies and higher Securities Transaction Tax (STT) collections, as reported by PTI.
Corporate and Non-Corporate Tax Trends
Net corporate tax collections increased 22% to Rs 2.08 lakh crore during the period, while net non-corporate tax (NCT) collections, which include taxes paid by individuals, Hindu Undivided Families (HUFs), and firms, rose 8% to about Rs 2.94 lakh crore. Collections from STT jumped 45% to Rs 18,856 crore.
Advance Tax Collections
Advance tax collections, often seen as a key indicator of business performance, grew 15.30% to more than Rs 1.78 lakh crore. Corporate advance tax payments rose 16% to over Rs 1.40 lakh crore, while advance tax collections from non-corporate taxpayers increased 13% to Rs 37,620 crore.
Refunds and Gross Collections
Refunds worth Rs 89,026 crore were issued till June 17, up 1.19% from the year-ago period. On a gross basis, direct tax collections increased 12.46% to over Rs 6.10 lakh crore. Gross corporate tax collections stood at more than Rs 2.76 lakh crore, while non-corporate tax collections were about Rs 3.15 lakh crore.
Budget Targets and Expert Views
The government has budgeted direct tax collections of Rs 26.97 lakh crore in FY27, implying a growth of 15% over the Rs 23.40 lakh crore collected in FY26. Deloitte India Partner Rohinton Sidhwa said overall it appears that tax collections have shrugged off the degrowth caused by previous years' rate cut and once again resumed the growth path. "The data also shows strong advance tax growth from companies indicating the corporate sector is doing well. While these are early indicators of the trends sustains it would help keep the government on its track of maintaining the fiscal deficit target," Sidhwa said, as quoted by PTI.
EY India Tax Partner Jayesh Sanghvi said the advance tax growth indicates a reversal trend from the tepid growth of the corresponding period last year on both corporate and non-corporate. "This is a forward indicator of potential business confidence. Interestingly, the STT growth stands out indicating continued heightened market activity following from buoyant corporate results for FY 2025-26," Sanghvi said.
