Net Direct Tax Collections Rise 14.6% to ₹5.21 Trillion in FY27

As per the latest data released by the Income Tax Department, the net direct tax collections for the current financial year (1st April 2026-June 17, 2026) rose by 14.64 per cent year on year to ₹5.21 trillion. The growth in the corporate tax receipts, non-corporate taxes and advance tax payments helped to drive the increase in the tax collections.

Direct Tax Collections Strong Growth

The Income Tax Department reported that the net direct tax collections reached to around ₹5.21 trillion as of June 17, 2026 as compared with ₹4.5 trillion collected during the last period of the previous financial year.

Net direct tax collections represent the total tax revenue after accounting for the refunds that are issued to taxpayers.

The double-digit increase suggests that the sustained growth in the taxable income and continued improvement in the compliance levels among businesses and individuals.

The strong collections also provide the positive signal for the government finances at the beginning of FY27.

Gross Direct Tax Collections Cross ₹6 Trillion

Gross direct tax collections, which represent the total tax receipts before refunds also rose by 12.46 per cent year on year.

This collections stood at around ₹6.1 trillion as of June 17, 2026 compared with the ₹5.4 trillion during the same period in FY26.

This increase showcases the higher tax contributions from both the corporate and non-corporate taxpayers and that indicates the continued expansion in economic activity across various sectors.

Refunds Issued During the Period

Tax refunds also issued by the government during the period amounted to around ₹89,025.71 crore.

This was marginally higher than the ₹87,979.39 crore refunded during the corresponding period last year and it marks the increase of 1.19 per cent.

Timely refunds are also an important aspect of the efficient tax administration that ensures the liquidity for the taxpayers and maintaining trust in the tax system.

Corporate Tax Collections Leads The Growth

Corporate tax collections has been emerged as the major contributor to the rise in the direct tax revenue.

Net corporate tax collections increased to around ₹2.08 trillion during the April to June period and compared with the ₹1.7 trillion in the last year.

The growth indicates that the healthy profitability among the companies and stronger business activity.

It also reflects the impact of the improved tax compliance and sustained economic growth.

Rise in Non-Corporate Tax Collections

Non-corporate tax collections also recorded the healthy growth during the period.

These taxes are paid by the,

• Individual taxpayers
• Hindu Undivided Families (HUFs)
• Partnership firms
• Associations of Persons (AOPs)
• Bodies of Individuals (BOIs)
• Local authorities
• Artificial juridical persons

Net collections from the non-corporate taxes rose to total ₹2.93 trillion from ₹2.71 trillion a year earlier.

What the Latest Data Indicates

The early FY27 tax collection figures suggesting that the economic activity of the country remains resilient despite the global uncertainties.

Several factors are also contributing to the strong growth,

• Robust corporate profitability
• Increased advance tax payments
• Better tax compliance
• Continued formalization of the economy
• Stable income growth among the individuals and businesses