New Delhi: India’s net direct tax collections grew 16.1 percent year-on-year to 6.51 trillion rupees from April 1 to July 13, indicating sustained strength in corporate earnings and personal incomes amid rising global uncertainty linked to the West Asia conflict.
The improved collections bolster the central government’s revenue position in the opening months of FY27, offering more flexibility for planned expenditures.
Official figures from the Income Tax Department showed gross direct tax collections climbed to 7.74 trillion rupees from 6.66 trillion rupees in the same period last year.
Refunds paid out rose 14.57 percent to 1.22 trillion rupees, resulting in net direct tax collections of 6.51 trillion rupees versus 5.59 trillion rupees previously.
Growth came from both corporate and non-corporate sources. Gross corporate tax collections increased to 3.35 trillion rupees from 2.90 trillion rupees, while gross non-corporate tax collections, covering individuals, HUFs, firms and other entities, rose to 4.12 trillion rupees from 3.58 trillion rupees. Securities transaction tax collections jumped to 26,429 crore rupees from 17,876 crore rupees.
After refunds, net corporate tax collections reached 2.40 trillion rupees and net non-corporate tax collections stood at 3.85 trillion rupees.
The data point to steady economic activity in the first quarter of FY27. Direct taxes, tied to profits and incomes, signal healthy earnings, better compliance and ongoing formalisation, unlike GST which tracks consumption.
These figures include advance tax, TDS, TCS, self-assessment and regular payments, serving as early indicators of income and business trends.
Economists note that robust direct tax growth supports fiscal discipline while allowing continued capital and social spending, reducing reliance on extra market borrowings, according to Abhash Kumar of the University of Delhi.
