India’s net direct tax collections surged by 16.4% year-on-year to reach Rs 6.51 lakh crore as of July 13 in the current fiscal year. This growth was primarily attributed to increased corporate tax, non-corporate tax, and securities transaction tax (STT) collections. Net corporate tax collection saw a significant rise of over 22% to approximately Rs 2.40 lakh crore, while net non-corporate tax collection increased by around 12% to Rs 3.85 lakh crore. Securities Transaction Tax (STT) also witnessed a substantial jump of over 44% to over Rs 26,000 crore.
Gross direct tax collections showed a notable increase of 16.11% to Rs 7.74 lakh crore during the same period. Additionally, refunds issued rose by 14.57% to Rs 1.22 lakh crore, as per the data released. On a gross basis, corporate tax collections climbed to Rs 3.35 lakh crore from Rs 2.90 lakh crore, while non-corporate tax collections grew to Rs 4.12 lakh crore from Rs 3.58 lakh crore. Gross STT collections also saw a rise to Rs 26,428.96 crore from Rs 17,875.88 crore.
The tax figures encompass payments made by both corporates and non-corporate entities, including individuals, Hindu Undivided Families (HUFs), firms, associations of persons (AoPs), bodies of individuals (BoIs), local authorities, and artificial juridical persons. The government has set a target to collect Rs 26.97 lakh crore from direct taxes in the ongoing fiscal year, reflecting a 15% growth over the previous fiscal year’s collection of Rs 23.40 lakh crore.
Meanwhile, India’s fiscal deficit for April-May of the financial year 206-27 stood at Rs 1.624 lakh crore, constituting 9.6% of the full-year target, according to data from the Controller General of Accounts. The government has established a fiscal deficit target of Rs 16.96 lakh crore for the entire financial year, indicating a strong fiscal position based on the figures from the initial two months, aligning with the Budget target for 2026-27.
