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Direct Tax Collections Rise 13% to Rs 12.12 Lakh Crore
The government collected more direct taxes than it did during the same period last year.
These taxes mainly come from companies and people who earn income.
Net collections rose 13% and crossed Rs 12.12 lakh crore.
Companies paid much more in advance and corporate taxes.
The government also gave back more money through tax refunds.
During the first four months of the financial year, the fiscal deficit was below the amount recorded last year.
A lower deficit can mean the government needs to borrow less money.
However, higher fuel and fertiliser subsidies could increase government spending later.
Net direct tax collections rose 13% to more than Rs 12.12 lakh crore between April 1 and September 17.
Gross direct tax collections increased over 15% year-on-year to Rs 14.3 lakh crore.
Corporate tax collections grew 19.48% to about Rs 5.56 lakh crore, while personal income tax collections rose 6% to over Rs 6.16 lakh crore.
Advance tax collections increased 16.18% to Rs 5.22 lakh crore, and refunds rose more than 29% to over Rs 2.2 lakh crore.
India’s April-July fiscal deficit was Rs 4.55 lakh crore, or 26.8% of the full-year target, although higher subsidy costs could create pressure.
- Who
- The Government of India, with tax data released by the Central Board of Direct Taxes.
- What
- Net direct tax collections rose 13% to more than Rs 12.12 lakh crore, while the April-July fiscal deficit stood at Rs 4.55 lakh crore.
- Where
- India.
- When
- Direct tax figures cover April 1 to September 17; fiscal deficit figures cover April through July of FY27.
- Why
- Higher tax collections support government finances, while fiscal consolidation aims to reduce borrowing and keep the deficit under control; higher subsidy costs could create pressure.
Fiscal Improvement
Fiscal Pressure
Deficit trajectory
Fiscal Improvement
The April-July fiscal deficit was lower than in the same period last year and represented a smaller share of the full-year target, indicating progress on fiscal consolidation.
Fiscal Pressure
The government still faces uncertainty because higher petroleum and fertiliser subsidy costs linked to rising prices could increase expenditure and put pressure on the deficit.
Economic effects
Fiscal Improvement
Lower government borrowing could leave more funds available in the banking sector for corporate and consumer lending, supporting economic growth and price stability.
Fiscal Pressure
Additional subsidy spending could limit the improvement in government finances by increasing borrowing or reducing fiscal room.
Key facts
- Net direct tax collections
- More than Rs 12.12 lakh crore, up 13% year-on-year
- Gross direct tax collections
- Rs 14.3 lakh crore, up over 15%
- Corporate tax collections
- About Rs 5.56 lakh crore, up 19.48%
- Advance tax collections
- Rs 5.22 lakh crore, up 16.18%
- Tax refunds
- More than Rs 2.2 lakh crore, up over 29%
- FY27 fiscal deficit target
- Rs 16.96 lakh crore, equal to 4.3% of GDP
- April-July fiscal deficit
- Rs 4.55 lakh crore, or 26.8% of the full-year target
Sources
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