India's direct tax collections recorded healthy growth in the opening months of FY27, with net collections crossing Rs 5.21 lakh crore as of June 17. The latest figures released by the Income Tax Department indicate sustained momentum in tax receipts, supported by higher corporate tax payments and steady compliance among taxpayers.
Net direct tax collections, after accounting for refunds, stood at Rs 5.21 lakh crore between April 1 and June 17. This marks a 14.64 per cent increase compared to the corresponding period of the previous financial year.
Corporate tax collections see strong jump
Corporate tax remained the key driver of growth during the period. Net corporate tax collections reached Rs 2.08 lakh crore, registering a year-on-year rise of 22.4 per cent.
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Non-corporate taxes, which largely comprise personal income tax and other taxes paid by individuals, also moved higher. Collections under this category came in at Rs 2.93 lakh crore, reflecting an increase of 8.4 per cent over the same period last year.
The data points to continued economic activity across sectors and a stable flow of tax revenues during the first quarter of the financial year.
Gross direct tax mop-up crosses Rs 6 lakh crore
Before adjusting refunds, gross direct tax collections stood at Rs 6.10 lakh crore, up 12.46 per cent from a year earlier.
During the same period, the government issued refunds worth Rs 89,025 crore. In comparison, refunds amounting to Rs 87,979 crore were released in the corresponding period of the previous fiscal year.
Advance tax payments remain robust
Advance tax collections also maintained a strong pace. Total advance tax receipts reached Rs 1.78 lakh crore by June 17, recording growth of 15.3 per cent year-on-year.
Of this, advance tax paid by companies stood at Rs 1.41 lakh crore, up 16 per cent from a year ago. Collections from non-corporate taxpayers rose 12.7 per cent to Rs 37,620 crore.
STT collections surge nearly 45%
Receipts from Securities Transaction Tax (STT) registered a sharp increase during the period. STT collections climbed to Rs 18,856 crore, compared with Rs 13,013 crore in the year-ago period, reflecting a growth of nearly 45 per cent.
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The latest tax numbers highlight a strong start to FY27, with higher corporate tax payments, healthy advance tax inflows and increased market-linked tax collections contributing to the overall rise in revenues.
FAQs:
What are direct tax collections in India?
Direct tax collections include taxes paid directly by individuals and companies, such as income tax and corporate tax.
Why are India's direct tax collections rising in FY27?
Higher corporate tax payments, strong advance tax inflows, and sustained economic activity have contributed to the increase in direct tax collections.
