New Delhi: Net direct tax collection has increased 13.21 per cent to about Rs 13.38 lakh crore so far this financial year, reaching about 50 per cent of the full year budget target.
The growth in direct tax collection between April 1 and October 14 this fiscal is driven by a robust 20 per cent growth in corporate taxes, despite a 67 per cent increase in refunds to non-corporate taxpayers, which include individuals, firms and HUFs.
Net corporate tax mop-up grew 20.58 per cent to over Rs 5.99 lakh crore, while non-corporate tax rose 5.83 per cent to about Rs 6.92 lakh crore so far this fiscal year.
Securities transaction tax (STT) kitty swelled about 52 per cent to Rs 46,840 crore till October 14 of FY27. The budget target for STT is Rs 73,700 crore for the fiscal.
The government has budgeted to collect Rs 26.97 lakh crore from direct taxes in the current financial year, a 15 per cent growth over Rs 23.40 lakh crore collected in FY26.
Of this, Rs 13.38 lakh crore or close to 50 per cent of the budget target has already been achieved as on October 14.
Price Waterhouse & Co LLP, Partner, Hitesh Sawhney, said the tax collection numbers reflect strong tax buoyancy and improved compliance. “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.
As per the data released by the Central Board of Direct Taxes (CBDT), refund issuances to both corporate and non-corporate taxpayers soared 24 per cent year-on-year to Rs 2.65 lakh crore during the period.
Nangia Global, Senior Partner and India Tax leader, Aravind Srivatsan, said while globally, personal income tax has outpaced corporate tax growth, in India, corporate tax collections continue to grow at the faster rate.
“This shows the underlying resilience of the Indian economy and the ability to do better with the easing of global economic shocks,” Srivatsan added.
On a gross basis, direct tax collection rose 15 per cent to Rs 16.03 lakh crore till October 14. This included corporate tax collection of Rs 7.53 lakh crore, non-corporate tax of Rs 8.03 lakh crore and Rs 46,840 crore STT.
EY India, Tax Partner, Jayesh Sanghvi, said with net direct tax collections reaching around 50 per cent of the FY2026-27 Budget Estimate in the first six-and-a-half months, the government’s tax collections appear to be on track.
“The 51.6 per cent 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.
Deloitte India, Partner, Rohinton Sidhwa, said the STT collections growth is being primarily driven by rate hikes in Budget 2026 rather than an increase in turnover.
Grant Thornton Bharat, Partner – Tax, Richa Sawhney, said the latest direct tax numbers reflect healthy tax buoyancy, with broad-based growth.
Equally significant is the sharp increase in refunds, particularly for non-corporate taxpayers, which reflects the administration’s focus on faster processing of taxpayer claims, Sawhney said.
