Net Direct Tax Collections Rise 16.40% as on 13 July 2026

Direct Tax Collections Grow 16.4% in FY 2026-27; Strong Rise in Corporate Tax and STT

The provisional direct tax collection figures for FY 2026-27 (up to 13 July 2026) indicate a healthy growth in tax revenues, reflecting improved economic activity, stronger corporate profitability, and better tax compliance. According to data released through TINMIS, net direct tax collections increased by 16.40% to ₹6.51 lakh crore, compared to ₹5.59 lakh crore collected during the corresponding period of FY 2025-26.

Gross direct tax collections stood at ₹7.74 lakh crore, registering a 16.11% year-on-year increase over the previous year’s collection of ₹6.66 lakh crore. This growth has been driven primarily by higher collections from both corporate taxpayers and non-corporate taxpayers, along with a sharp rise in Securities Transaction Tax (STT).

Corporate Tax Registers Robust Growth

Gross Corporate Tax (CT) collections increased from ₹2.90 lakh crore to ₹3.35 lakh crore, representing a growth of approximately 15.6%. This suggests that companies have continued to report healthy profits despite global economic uncertainties. Stable corporate earnings, improved compliance, and advance tax payments appear to have contributed significantly to this increase.

However, refunds issued to corporate taxpayers also remained substantial at ₹95,145 crore, marginally higher than ₹93,225 crore in the previous year. Consequently, net corporate tax collections stood at ₹2.40 lakh crore, reflecting growth of nearly 22%, indicating that corporate tax continues to be a major contributor to the overall increase in direct tax revenue.

Non-Corporate Tax Collections Reflect Strong Individual Income Growth

Collections from Non-Corporate Tax (NCT), which includes taxes paid by individuals, HUFs, firms, LLPs, associations, local authorities, and other non-corporate entities, also recorded healthy growth.

Gross NCT collections increased from ₹3.58 lakh crore to ₹4.12 lakh crore, registering an increase of about 15.0%. This reflects sustained growth in personal incomes, business profits, and tax compliance among non-corporate taxpayers.

One notable feature, however, is the sharp rise in refunds. Refunds under NCT almost doubled from ₹13,684 crore to ₹27,333 crore, indicating faster processing of taxpayer refunds by the Income-tax Department. Despite this, net NCT collections still increased to ₹3.85 lakh crore, representing growth of around 11.7% over the previous year.

Securities Transaction Tax Shows Exceptional Growth

Among all tax components, Securities Transaction Tax (STT) registered the strongest performance. Gross STT collections rose from ₹17,876 crore to ₹26,429 crore, reflecting an impressive growth of nearly 48%.

The sharp increase can largely be attributed to sustained trading volumes in equity markets, continued investor participation, and higher market turnover during the period. Since no refunds were reported under STT, the entire collection contributed directly to the net tax revenue.

Refunds Continue to Rise

Total refunds issued during the period amounted to ₹1.22 lakh crore, compared to ₹1.07 lakh crore in the corresponding period of the previous year, registering a growth of 14.57%.

The continued increase in refunds indicates the Income-tax Department’s emphasis on faster refund processing and improved taxpayer services. Although higher refunds temporarily reduce net collections, they enhance taxpayer confidence and improve the overall efficiency of tax administration.

Overall Outlook

The direct tax collection trends up to mid-July present a positive picture for the Government’s revenue position. Growth in both corporate and non-corporate taxes demonstrates resilience in economic activity, while the exceptional increase in STT reflects buoyant capital markets.

Importantly, net collections have grown slightly faster (16.40%) than gross collections (16.11%), despite a significant increase in refunds. This suggests that the tax base continues to expand and voluntary compliance remains strong.

If these trends continue during the remaining part of the financial year, direct tax collections are likely to remain well aligned with the Government’s fiscal projections. Continued economic growth, improved compliance measures, increased digitalisation of tax administration, and efficient refund processing are expected to support sustained revenue growth during FY 2026-27.

Direct Tax Collections for F.Y. 2026-27 (as on 13.07.2026)

(Rs. In Crore)

Source: TINMIS

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