India's net direct tax collections continued to show strong growth during the first half of financial year 2026-27, with receipts rising nearly 13 per
cent from a year earlier, according to the latest data released by the Income Tax Department. Net direct tax collections stood at Rs 12.12 lakh crore as of September 17, marking a 12.96 per cent increase compared with the corresponding period last year. Advance tax payments also maintained a strong pace, rising 16.18 per cent year-on-year to Rs 5.22 lakh crore. The latest numbers offer an indication of the pace of tax mobilisation so far in FY27, with corporate taxpayers accounting for a significant portion of the advance tax growth. Before accounting for refunds, gross direct tax collections reached Rs 14.32 lakh crore as of September 17. This represents a 15.19 per cent increase from Rs 12.44 lakh crore collected during the same period a year earlier. However, the growth in gross collections was accompanied by a sharper increase in refunds. Refunds issued during the period climbed 29.19 per cent to Rs 2.20 lakh crore, compared with Rs 1.70 lakh crore in the year-ago period. After adjusting for these refunds, net direct tax collections came in at Rs 12,12,410.71 crore. This compares with net collections of Rs 10,73,272.17 crore as of September 17, 2025. The faster rise in refunds means that the growth rate in net collections is lower than the increase recorded in gross receipts. Corporate Tax Collections Gain Pace Corporate taxes continued to make a substantial contribution to overall net direct tax receipts. Corporate tax collections stood at Rs 5.56 lakh crore, up from Rs 4.65 lakh crore during the corresponding period of the previous year. Non-corporate tax collections, meanwhile, increased to Rs 6.16 lakh crore from Rs 5.81 lakh crore a year earlier. The data indicates that both segments have contributed to the overall increase in net direct tax collections during the period. Advance tax payments, which represent taxes paid during the financial year ahead of the final assessment, recorded a 16.18 per cent year-on-year increase. Collections rose to Rs 5,21,940.72 crore as of September 17, compared with Rs 4,49,256.41 crore in the same period last year. Corporate advance tax recorded particularly strong growth of 18.09 per cent. Collections from this category increased to Rs 4,16,083.59 crore from Rs 3,52,351.59 crore a year earlier. Non-corporate advance tax collections also moved higher, though at a slower pace. The figure rose 9.24 per cent to Rs 1,05,856.69 crore from Rs 96,904.05 crore. The performance of advance tax collections is closely watched as it provides an indication of tax payments being made during the year rather than after the completion of the assessment process. Securities Transaction Tax (STT) collections also recorded a significant increase during the period. STT receipts rose to Rs 40,214.36 crore from Rs 26,305.72 crore in the corresponding period last year. The increase comes alongside the broader rise in direct tax collections. The figures cover collections up to September 17 and therefore provide a snapshot of tax revenue performance during the first half of FY27. Refund Growth Remains A Key Factor While the headline growth in gross direct tax collections remained strong, the pace of refunds has emerged as an important factor affecting the final net figure. Gross collections expanded 15.19 per cent year-on-year, whereas refunds increased by 29.19 per cent. As a result, net direct tax collections grew at a slower 12.96 per cent. Going ahead, the trajectory of advance tax payments and the relationship between gross collections and refunds will remain important in determining how net direct tax revenues perform through the rest of FY27.
