The government's net direct tax collection rose 13 per cent to over Rs 12.12 lakh crore till September 17 in the current financial year, buoyed by better advance tax mop-up from corporates, data released by CBDT on Friday showed.
Advance tax mop-up grew 16.18 per cent to about Rs 5.22 lakh crore. This includes an 18 per cent growth, at over Rs 4.16 lakh crore, in advance tax payments by corporates, and a 9.24 per cent rise in non-corporate advance tax of Rs 1.06 lakh crore.
Refund issuance jumped 29.19 per cent to over Rs 2.20 lakh crore till September 17, as per the Central Board of Direct Taxes (CBDT) data.
Gross direct tax collection clocked a 15 per cent growth, totalling over Rs 14.32 lakh crore.
After adjusting refunds, net collections from direct taxes (which includes corporate, non corporate, STT) registered a 12.96 per cent growth at over Rs 12.12 lakh crore.
Net corporate tax mop-up rose 19.48 per cent to about Rs 5.56 lakh crore, while non-corporate tax (individuals and HUFs) mop-up increased 6 per cent to over Rs 6.16 lakh crore. Securities Transactions Tax (STT) collection grew 53 per cent to Rs 40,214 crore between April 1 and September 17.
Deloitte India, Partner, Rohinton Sidhwa said the over 50 per cent increase in STT collection seems to be primarily driven by rate hikes in Budget rather than an increase in turnover. It may be recalled a 150% rate hike was made in STT rates on equity futures, effective April 1, 2026.
AKM Global, Managing Partner, Amit Maheshwari, said the tax collection trends are broadly consistent with the underlying momentum in the domestic economy. The sustained increase in corporate and advance tax collections provides an indication of continued income and business activity during the period.
"At the same time, the 29.19% increase in refunds highlights the need to balance stronger revenue mobilisation with efficient processing of legitimate tax claims. Going forward, sustaining economic activity, broadening the tax base and strengthening technology-led compliance will remain important for maintaining the pace of revenue growth," Maheshwari said.
EY India, Tax Partner, Jayesh Sanghvi, said the data indicates that the tax buoyancy is broad-based with non-corporate tax now accounting for 48.7 per cent of the gross pie versus corporate tax's 48.5 per cent.
"Nominal GDP for June quarter of FY27 grew 10.3 per cent, and the FY27 Budget assumes full-year nominal growth of 10 per cent. Against that baseline, gross direct tax buoyancy runs at roughly 1.47, and net buoyancy at 1.26, a meaningful reversal from FY2025-26," Sanghvi said.
Nangia Global, Senior Partner and India Tax leader, Aravind Srivatsan, said the latest advance tax data shows underlying economics are resilient. On semi annualised basis, a 18 percent growth in corporate tax payment belies oil shocks, currency shocks and supply chain disruptions.
"Even more resilient is growth in the capital market tax collections, i.e. STT which paints the resilience of Indian stock market, trading volumes and impact of IPO activity post Covid," Srivatsan added.
Deloitte India Partner Sumeet Hemkar said the tax collection numbers suggest that the government is firmly on track towards meeting or exceeding its Budget estimates on direct tax collections for FY27.
Grant Thornton Bharat, Partner - Tax, Richa Sawhney, said direct tax collections continue to signal healthy underlying economic activity and the strength of the tax base. The steady growth in advance tax payments remains a positive indicator of taxpayer confidence, business performance and expectations of sustained income growth.
The government has budgeted to collect Rs 26.97 lakh crore from direct taxes in the current financial year, a 15 per cent growth over Rs 23.40 lakh crore collected in FY26.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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