New Delhi: India's net direct tax collections rose 13.21 percent to Rs 13.38 lakh crore during April 1-October 14 of the current financial year, reaching nearly 50 percent of the government's annual budget target, according to data released by the Central Board of Direct Taxes (CBDT).
The growth was primarily driven by strong corporate tax receipts, which increased more than 20 percent, even as higher refunds moderated the overall rise in net collections.
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The government has set a direct tax collection target of Rs 26.97 lakh crore for FY2026-27, representing a 15 percent increase over the Rs 23.40 lakh crore collected in the previous financial year.
Net corporate tax collections jumped 20.58 percent to over Rs 5.99 lakh crore during the period, reflecting strong revenue growth from businesses.
In comparison, net non-corporate tax collections, which include taxes paid by individuals, firms and Hindu Undivided Families (HUFs), increased 5.83 percent to approximately Rs 6.92 lakh crore.
On a gross basis, direct tax receipts rose 15 percent to Rs 16.03 lakh crore, comprising Rs 7.53 lakh crore in corporate taxes, Rs 8.03 lakh crore in non-corporate taxes and Rs 46,840 crore from securities transaction tax (STT).
Securities transaction tax collections recorded a sharp increase of approximately 52 percent to Rs 46,840 crore as of October 14, against the full-year budget target of Rs 73,700 crore.
However, tax experts cautioned against attributing the entire increase to higher stock market activity.
Deloitte India Partner Rohinton Sidhwa said the growth was primarily driven by STT rate increases announced in Budget 2026 rather than higher trading turnover.
EY India Tax Partner Jayesh Sanghvi also noted that the increase partly reflected higher STT rates on equity derivatives effective April 2026.
"The 51.6 percent increase in STT collections points to continued activity in equity and derivatives markets despite global pressures. This growth has also been partly supported by the increase in STT rates on equity derivatives effective April 2026," Sanghvi said.
The CBDT data showed that tax refunds issued to corporate and non-corporate taxpayers increased 24 percent year-on-year to Rs 2.65 lakh crore.
Refunds to non-corporate taxpayers alone surged 67 percent, moderating growth in net personal and other non-corporate tax collections.
Grant Thornton Bharat Partner Richa Sawhney said the rise in refunds reflected the tax administration's focus on faster processing of taxpayer claims.
Tax experts said the latest figures indicated healthy tax buoyancy and improving compliance, supported by economic growth.
Price Waterhouse & Co LLP Partner Hitesh Sawhney said the strong increase in corporate tax collections suggested healthy business performance, while higher STT receipts reflected sustained participation in financial markets.
"Net corporate tax collections growth indicates 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," he added.
Nangia Global Senior Partner and India Tax Leader Aravind Srivatsan said India's corporate tax collections were growing faster than personal income tax receipts, contrasting with trends in several other economies.
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"This shows the underlying resilience of the Indian economy and the ability to do better with the easing of global economic shocks," Srivatsan added.
With nearly half the annual target achieved in the first six-and-a-half months, tax experts expect the government to remain on course to meet its FY27 direct tax collection estimates, although the final outcome will depend on corporate profitability, market conditions and refund trends during the remainder of the year.
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