Archive · 19 Sep 2026
India’s Direct Tax Collections Rise 13% to ₹12.12 Lakh Crore
India collected more direct taxes during the first part of FY27.
Net collections reached ₹12.12 lakh crore by September 17, about 13% more than a year earlier.
Gross collections were ₹14.32 lakh crore before refunds were counted.
Companies paid ₹5.56 lakh crore after refunds, while non-corporate taxpayers contributed ₹6.16 lakh crore.
Advance tax payments also grew, suggesting taxpayers paid more based on expected income.
Securities Transaction Tax collections rose sharply from market-related transactions.
Some derivatives tax rates were increased from April 1, which contributed to the STT increase.
Refunds also rose substantially, and experts said tax collections indicate strong revenue and business activity but do not by themselves prove overall economic growth.
Net direct tax collections rose 12.96% year-on-year to ₹12.12 lakh crore by September 17 of FY27.
Gross direct tax collections increased 15.19% to ₹14.32 lakh crore before refunds.
Net corporate tax collections grew 19.48% to ₹5.56 lakh crore, while net non-corporate collections rose 5.99% to ₹6.16 lakh crore.
Advance tax collections increased 16.18% to ₹5.22 lakh crore, including ₹4.16 lakh crore from corporate taxpayers.
Securities Transaction Tax rose about 53% to ₹40,214 crore, while refunds increased 29.19% to ₹2.20 lakh crore.
- Who
- The Central Board of Direct Taxes and Income Tax Department reported figures covering corporate and non-corporate taxpayers, including individuals, HUFs and other entities.
- What
- Net direct tax collections rose 12.96% year-on-year to ₹12.12 lakh crore, while gross collections rose 15.19% to ₹14.32 lakh crore.
- When
- The figures cover April 1 through September 17 of FY27 and were released on September 18.
- Where
- India.
- Why
- Higher corporate and advance tax payments, increased STT receipts and broader taxpayer contributions supported collection growth, while higher refunds reduced net collections relative to gross collections.
Positive interpretation
Cautious interpretation
Economic activity
Positive interpretation
Tax experts said stronger corporate and advance tax payments indicate healthy business activity, taxpayer confidence, rising formalization and a strengthening tax base.
Cautious interpretation
Other experts cautioned that tax collections alone cannot be treated as a direct measure of overall economic growth.
Refund growth
Positive interpretation
The 29.19% increase in refunds was described as evidence of faster processing and improved taxpayer service, providing timely liquidity to taxpayers.
Cautious interpretation
Higher refunds partly offset gross collection growth and could moderate net-collection growth in subsequent quarters if the trend continues.
Securities Transaction Tax
Positive interpretation
The sharp rise in STT may indicate higher equity-market turnover and increased tax liabilities from capital-market gains.
Cautious interpretation
The increase also followed higher STT rates on specified derivatives transactions from April 1, so the rise does not necessarily reflect market activity alone.
- Net direct tax collections
- ₹12.12 lakh crore, up 12.96% year-on-year by September 17
- Gross direct tax collections
- ₹14.32 lakh crore, up 15.19% before refunds
- Net corporate tax
- ₹5.56 lakh crore, up 19.48% year-on-year
- Net non-corporate tax
- ₹6.16 lakh crore, up 5.99% year-on-year
- Advance tax collections
- ₹5.22 lakh crore, up 16.18% year-on-year
- Securities Transaction Tax
- ₹40,214 crore, up about 53% year-on-year
- Refunds
- ₹2.20 lakh crore, up 29.19% from ₹1.70 lakh crore
Sources
India's Net Direct Tax Collections Rise 13% to ₹12.1 Lakh Crore by Sept 17
FY27 Direct tax collections rise 13% so far to Rs 12.12 lakh crore, STT collection up 53%
Net direct tax collections rise 13% to ₹12.1 trillion
Net direct tax collection rises 13% to Rs 12.12 lakh crore
