Advance Tax Collections Grow 15.30% due to Higher Corporate Tax Payments

The latest direct tax collection figures released up to 17 June 2026 indicate a healthy increase in tax revenues during the early part of Financial Year (FY) 2026-27. The data reflects growth in both gross and net collections, supported by higher corporate tax receipts, increasing non-corporate tax collections, and a strong rise in advance tax payments.

Strong Growth in Gross Direct Tax Collections

Gross direct tax collections reached Rs. 6.10 lakh crore as on 17 June 2026, compared to Rs. 5.42 lakh crore during the corresponding period of FY 2025-26. This represents a growth of 12.46%, reflecting continued expansion in taxable income and economic activity.

Among the various components:

• Corporate Tax (CT) collections increased from Rs. 2.48 lakh crore to Rs. 2.77 lakh crore, registering growth of approximately 11.32%.
• Non-Corporate Tax (NCT) collections rose from Rs. 2.81 lakh crore to Rs. 3.15 lakh crore, reflecting growth of around 12.06%.
• Securities Transaction Tax (STT) showed the strongest growth, increasing from Rs. 13,013 crore to Rs. 18,856 crore, a rise of nearly 44.90%.
• Collections under Other Taxes remained negligible and declined significantly in absolute terms.

The increase in gross collections indicates that both corporate entities and non-corporate taxpayers contributed positively to revenue generation during the initial months of the financial year.

Refunds Continue at Elevated Levels

Tax refunds issued up to 17 June 2026 amounted to Rs. 89,026 crore, compared to Rs. 87,979 crore during the corresponding period of the previous year. This reflects a modest increase of 1.19%.

A closer look at the refund data reveals an interesting trend:

• Corporate tax refunds declined from Rs. 78,345 crore to Rs. 68,305 crore, representing a reduction of nearly 12.82%.
• In contrast, non-corporate tax refunds more than doubled, increasing from Rs. 9,632 crore to Rs. 20,716 crore, reflecting a sharp rise of approximately 115.07%.

The significant increase in non-corporate refunds may indicate faster processing of refund claims relating to individuals, firms, HUFs, and other non-corporate taxpayers. At the same time, the reduction in corporate refunds helped improve overall net corporate tax collections.

Net Direct Tax Collections Register Robust Increase

After adjusting for refunds, net direct tax collections stood at Rs. 5.21 lakh crore, compared to Rs. 4.54 lakh crore in the previous year. This represents a strong growth of 14.64%, which exceeds the growth recorded in gross collections.

The higher growth in net collections can largely be attributed to the lower level of corporate tax refunds and stronger tax inflows.

Component-wise analysis shows:

• Net Corporate Tax collections increased from Rs. 1.70 lakh crore to Rs. 2.08 lakh crore, reflecting growth of approximately 22.44%.
• Net Non-Corporate Tax collections increased from Rs. 2.71 lakh crore to Rs. 2.94 lakh crore, recording growth of about 8.40%.
• Net STT collections rose sharply by nearly 44.90%, mirroring the growth seen in gross STT receipts.

The stronger growth in net corporate tax collections compared to non-corporate tax collections suggests that corporate profitability and tax compliance remain significant drivers of revenue growth during the current fiscal year.

Advance Tax Collections Reflect Positive Revenue Trends

Advance tax collections often serve as an important indicator of expected income and profitability during the financial year. The figures for FY 2026-27 show encouraging growth.

Total advance tax collections increased from Rs. 1.55 lakh crore to Rs. 1.78 lakh crore, registering growth of 15.30%.

Breaking down the figures:

• Corporate advance tax collections rose from Rs. 1.21 lakh crore to Rs. 1.41 lakh crore, recording growth of 16.01%.
• Non-corporate advance tax collections increased from Rs. 33,373 crore to Rs. 37,620 crore, showing growth of 12.73%.

The higher growth in corporate advance tax collections indicates that businesses may be projecting stronger earnings during FY 2026-27. Since advance tax payments are generally based on estimated annual income, this trend may reflect confidence among corporate taxpayers regarding business performance.

Key Takeaways

Several important observations emerge from the data:

1. Net collections are growing faster than gross collections, indicating improved revenue retention after accounting for refunds.
2. Corporate tax collections are outperforming non-corporate tax collections in terms of growth, particularly at the net collection level.
3. Advance tax growth of over 15% suggests expectations of continued income growth among taxpayers.
4. STT collections have witnessed exceptional growth, pointing towards sustained activity in securities markets.
5. Refund management remains significant, with a notable shift toward higher non-corporate refunds and lower corporate refunds.

Conclusion

The direct tax collection figures as of 17 June 2026 present a positive picture for FY 2026-27. Gross collections have grown by 12.46%, while net collections have expanded by 14.64%, supported by robust corporate tax receipts and strong advance tax payments. The substantial increase in advance tax collections and the sharp rise in STT receipts indicate continued economic activity and taxpayer participation. Although refund outflows remain sizeable, the overall revenue performance suggests a stronger start to the fiscal year compared to the corresponding period of FY 2025-26.

Direct Tax Collections for F.Y. 2026-27 (as on 17.06.2026)

(Rs. In Crore)

Source: TINMIS

* NCT includes taxes paid by individuals, HUFs, Firms, AoPs, BoIs, Local Authorities, Artificial Juridical Person

Advance Tax Collections for F.Y. 2026-27 (as on 17.06.2026)

(Rs. In Crore)

Source: TINMIS

* NCT includes taxes paid by individuals, HUFs, Firms, AoPs, BoIs, Local Authorities, Artificial Juridical Person

Source: https://www.incometaxindia.gov.in/documents/d/guest/press-release-17-06-2026-pdf