Net direct tax collection rose 13.21% year-on-year to about ?13.38 lakh crore between April 1 and October 14 of the current financial year, driven by growth in corporate tax receipts, according to data released by the Income Tax Department.
Net corporate tax collection increased 20.58% to over ?5.99 lakh crore during the period, while net non-corporate tax collection, which includes taxes paid by individuals, firms and Hindu Undivided Families (HUFs), rose 5.83% to about ?6.92 lakh crore.
Gross direct tax collection grew 15% year-on-year to ?16.03 lakh crore during the period. This included corporate tax collection of ?7.53 lakh crore and non-corporate tax collection of ?8.03 lakh crore.
Refund issuances rose 24.22% year-on-year to ?2.65 lakh crore during the period, weighing on the growth in net collections.
Sandeep Sehgal, Partner – Tax & Valuations at AKM Global, said the increase in corporate tax collections pointed to stronger corporate tax receipts, while non-corporate tax collections had grown at a slower pace.
Sehgal attributed the relatively modest growth in net non-corporate tax collections partly to higher refunds to individuals and other non-corporate taxpayers. He also said the increase in gross direct tax collections was broadly in line with economic growth projections.
Collection from securities transaction tax (STT) surged 52% to ?46,840 crore till October 14 of FY27.
Sehgal said the rise in STT collections should be viewed in the context of the higher STT rates on futures and options transactions announced in the Union Budget 2026, rather than being interpreted solely as a reflection of market momentum.
Richa Sawhney, Partner – Tax at Grant Thornton Bharat, said the data reflected growth across corporate taxes and securities transaction taxes. She added that the sharp rise in refunds had affected net collection growth but also pointed to more efficient refund processing, particularly for non-corporate taxpayers.
Sawhney said the trend suggested that tax collection efficiency was being accompanied by improvements in taxpayer services.
Hitesh Sawhney, Partner, Price Waterhouse & Co LLP, siad, "The direct tax numbers reinforce the strength of India's growth narrative. Net corporate tax collections have risen by over 20%, indicating healthy business performance, while the continued rise in STT collections underscores sustained investor participation in financial markets. These collection trends are consistent with India's robust GDP growth and demonstrate that economic expansion is translating into broad-based revenue growth alongside faster refund processing."
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