Net direct tax collection rises 16.4% to ₹6.51 lakh crore till July 13; corporate tax grows 22%

India's net direct tax collection rose 16.40% year-on-year to over ₹6.51 lakh crore as of July 13 in the current financial year, supported by robust growth in corporate tax receipts and healthy collections from non-corporate taxpayers, according to official data released on Tuesday.

The latest figures indicate a strong start to the Centre's revenue collections in FY27, with direct taxes remaining one of the key pillars of the government's fiscal position. The growth comes even as the Income Tax Department accelerated refund processing, issuing refunds worth more than ₹1.22 lakh crore during the period.

Corporate tax drives growth in direct tax collections

Net corporate tax collections registered a sharp 22% increase to ₹2.40 lakh crore, reflecting improved profitability and tax compliance among companies.

Meanwhile, net non-corporate tax (NCT) collections—which include taxes paid by individuals, Hindu Undivided Families (HUFs) and firms—rose nearly 12% to over ₹3.84 lakh crore till July 13.

The government also issued ₹1.22 lakh crore in tax refunds during the period, marking a 14.57% increase over the corresponding period of the previous fiscal. Higher refunds indicate continued efforts by the tax department to expedite taxpayer settlements while maintaining healthy revenue growth.

Gross collections cross ₹7.73 lakh crore

On a gross basis, direct tax collections increased 16.11% year-on-year to over ₹7.73 lakh crore.

The gross collections comprised over ₹3.35 lakh crore from corporate taxes and around ₹4.12 lakh crore from non-corporate taxes, underscoring broad-based growth across major taxpayer categories.

The steady increase in both corporate and personal tax collections reflects continued economic activity and improved tax compliance, while also providing the government with greater fiscal headroom to fund capital expenditure and welfare programmes during the current financial year.

FY27 target pegged at nearly ₹27 lakh crore

For FY27, the Union government has budgeted ₹26.97 lakh crore in direct tax collections, representing a 15% increase over the ₹23.40 lakh crore collected in FY26.

With net collections already crossing ₹6.5 lakh crore in the early months of the fiscal, the pace of tax mobilisation will be closely tracked over the coming quarters as policymakers monitor economic growth, corporate earnings and income tax receipts. The trajectory of direct tax collections is expected to remain a key indicator of economic activity and the government's ability to meet its fiscal deficit targets during the year.