India’s net direct tax collections registered strong growth during the current financial year, rising 11.76% year-on-year to Rs. 14.42 lakh crore (US$151.71 billion) between April 1 and November 10. The increase reflects higher tax receipts from corporate and non-corporate taxpayers, highlighting continued momentum in the country’s revenue mobilisation efforts.
According to data released by the Income Tax Department, net direct tax collections stood at Rs. 12.90 lakh crore during the corresponding period of the previous financial year. Gross direct tax collections, before accounting for refunds, increased by 14.02% to Rs. 17.50 lakh crore (US$184.11 billion), compared with Rs. 15.35 lakh crore a year earlier.
Corporate tax receipts remained a major contributor to the overall growth. Net corporate tax collections increased by approximately 17.84% to Rs. 6.32 lakh crore (US$66.49 billion), up from Rs. 5.36 lakh crore in the corresponding period last year. The rise indicates stronger revenue contributions from India’s corporate sector.
Net non-corporate tax collections also recorded an increase of 5.30%, reaching Rs. 7.56 lakh crore (US$79.54 billion), compared with Rs. 7.18 lakh crore previously. This category includes taxes paid by individuals, Hindu Undivided Families, firms and other entities, making it an important component of the country’s direct tax revenue.
Securities Transaction Tax (STT) collections witnessed particularly strong growth, surging approximately 51.56% to Rs. 54,077.90 crore (US$5.69 billion), against Rs. 35,681.88 crore during the year-ago period. The increase highlights the higher contribution of securities market transactions to government revenue.
Meanwhile, direct tax refunds also increased significantly. Refunds issued as of November 10 rose nearly 26% to Rs. 3.08 lakh crore (US$32.40 billion), compared with Rs. 2.45 lakh crore in the corresponding period of the previous financial year. The rise in refunds reflects the government’s tax settlement and refund processes alongside the expansion in gross collections.
For FY2026-27, the government has set a direct tax collection target of Rs. 26.97 lakh crore (US$283.75 billion), representing an ambitious 15% increase over the Rs. 23.40 lakh crore collected in FY2025-26. By November 10, net direct tax collections had already reached approximately 53% of the annual target.
The latest figures underline the importance of direct taxes in strengthening India’s fiscal position and supporting public expenditure. Sustained growth in corporate and individual tax contributions, together with increased securities transaction tax receipts, will remain important to achieving the government’s revenue objectives for the financial year.
India’s progress in direct tax mobilisation also reflects the growing significance of tax administration, compliance and economic activity in supporting government finances. The coming months will be crucial in determining whether the government can achieve its FY27 collection target while maintaining momentum in revenue growth.
