India’s Net Direct Tax Collections Rise 16.4% to ₹6.51 Lakh Crore as of July 13

In the ongoing fiscal year, India’s tax revenues have performed significantly, with the net direct taxes reaching ₹6.51 trillion as of July 13, a year-on-year rise of 16.4%. It is evident from the latest figures released by the Income Tax Department that the increase in revenues came as a result of higher collections from companies as well as individual taxpayers, despite the government paying out significantly higher tax refunds. The current data also indicates the vibrant economy, improved compliance, and higher revenue receipts, painting a bright picture of the country’s fiscal position.

Net Direct Tax Collections Register Strong Growth

Despite of the larger payouts of refunds, the Income Tax Department has announced that net direct tax collections have reached ₹6.51 lakh crore, compared to ₹5.59 lakh crore for the same period last financial year.

Main highlights

• Net Direct Tax collections: ₹6.51 lakh crore
• Growth: 16.4% YoY
• Collections in previous year: ₹5.59 lakh crore

There has been a sizeable jump in the corporate tax receipts.

Corporate Tax Collections

Corporate tax continues to be the largest component of total direct tax receipts.

Net Corporate Tax collections

• FY 2026-27 (as on July 13): ₹2.40 lakh crore
• FY 2025-26 (same period): ₹1.97 lakh crore

The rise indicates the return of good profitable corporate activity in various sectors of the economy.

Non-Corporate Tax Collections On The Rise

Non-corporate tax collections have also seen an upward spike.

• Total Non-Corporate Tax Collections
• This Year’s Figures: ₹3.85 lakh crore
• Last Year’s Figures: ₹3.44 lakh crore

This segment is made up of taxes charged on account of the following entities

1. Individuals
2. Hindu Undivided Families (HUFs)
3. Partnership Firms
4. Associations of Persons (AoPs)
5. Bodies of Individuals (BoIs)
6. Municipal Authorities
7. Artificial juridical entities

The increase in numbers is attributed to the increase in persons being taxed and the improving compliance.

Strong Growth Recorded for Securities Transaction Tax (STT)

On the other hand, the collection from the securities transaction tax (STT) also experienced a surge in collection numbers.

The current year’s figures are reported as ₹26,429 crore, whereas the previous year’s collection was of ₹17,876 crore.

The increased figures can indicate increased activity in India’s securities and equity markets, as well as increased volume of tax collection.

However, the category of “Other Taxes” reported a minimal negative collection of ₹2.02 crore this time around, as opposed to it being ₹269.45 crore last year.

Gross Direct Taxes Cross Over ₹7.74 Lakh Crores

Gross Direct tax collections also show a remarkable growth before accounting for refunds.

Highlights of Gross Direct collections

• Gross Direct Tax Collections: ₹7.74 lakh crore
• Growth: 16.11% year-on-year
• Last year’s Gross collection: ₹6.66 lakh crore

Gross Corporate Tax

• Year: ₹3.35 lakh crore
• Year before: ₹2.90 lakh crore

Gross Non-Corporate Tax

• Year: ₹4.12 lakh crore
• Year before: ₹3.58 lakh crore

The data shows improvement for both corporate and individual taxpayers.

Tax Refunds Increase By 15%

Tax refunds were also later issued by the government.

Tax Refunds

• Total Refunds Issued: ₹1.22 lakh crore
• Growth: 14.57%

Break up of Refunds

• Corporate Tax ₹95,145 crore
• Non-Corporate Tax ₹27,333 crore

What are the reasons for the surge?

The increase in direct taxes has been due to several contributing factors.

• Corporate Profitability
• Better Tax Compliance
• Growth in Income
• Healthy Equity Market