Net direct tax collection rises 14.6% to ₹5.21 lakh crore till June 17
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Net direct tax collection grew 14.64% to over ₹5.21 lakh crore till June 17 this fiscal year on higher advance tax mop-up from corporates, government data showed on Thursday.
Net corporate tax collection rose 22% to ₹2.08 lakh crore, and mop-up from net non-corporate tax (NCT), which includes taxes paid by individuals, HUFs, firms, grew 8% to about ₹2.94 lakh crore till June 17.
Mop-up from securities transaction tax (STT) grew 45% to ₹18,856 crore.
Advance tax collection grew 15.30% to over ₹1.78 lakh crore.
This includes 16% growth in mop-up from corporates at over ₹1.40 lakh crore, and 13% increase in NCT at ₹37,620 crore.
Refunds worth ₹89,026 crore were issued till May 17, registering an increase of 1.19% over the year-ago period.
On a gross basis, direct tax collection increased 12.46% to over ₹6.10 lakh crore. This includes corporate tax of over ₹2.76 lakh crore and NCT of about ₹3.15 lakh crore.
The government has budgeted to collect ₹26.97 lakh crore from direct taxes in the current fiscal year, a 15% growth over ₹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.
EY India tax partner Jayesh Sanghvi said the advance tax growth indicates a reversal trend from the tepid growth of 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.
(Except for the headline, Fortune India has not edited the content of this PTI report.)