Summary of this article
Net direct tax collection rises 14.64 per cent till June 17.
Corporate tax and advance tax collections drive growth.
STT collection jumps 45 per cent year-on-year.
Net direct tax collection grew 14.64 per cent to over Rs 5.21 lakh crore till June 17 of the current financial year, according to government data released on Thursday. The increase was supported by higher advance tax payments, particularly from corporates.
Net corporate tax collection rose 22 per cent to Rs 2.08 lakh crore during the period. Net non-corporate tax (NCT) collection, which includes taxes paid by individuals, Hindu Undivided Families (HUFs) and firms, increased 8 per cent to about Rs 2.94 lakh crore.
Collection from Securities Transaction Tax (STT) also recorded strong growth, rising 45 per cent to Rs 18,856 crore.
Advance Tax Collection Shows Steady Rise
Advance tax collection increased 15.30 per cent to over Rs 1.78 lakh crore till June 17.
Advance tax paid by corporates rose 16 per cent to more than Rs 1.40 lakh crore. Non-corporate advance tax collection grew 13 per cent to Rs 37,620 crore.
Advance tax is paid in instalments during the financial year based on estimated income and is often viewed as an early indicator of tax inflows for the year.
Refunds Increase Marginally
Refunds worth Rs 89,026 crore were issued till June 17, registering a growth of 1.19 per cent compared with the same period last year.
After accounting for refunds, net direct tax collection stood at over Rs 5.21 lakh crore.
Gross Collection Crosses Rs 6 Lakh Crore
On a gross basis, direct tax collection rose 12.46 per cent to more than Rs 6.10 lakh crore during the period.
Gross corporate tax collection stood at over Rs 2.76 lakh crore, while gross non-corporate tax collection was about Rs 3.15 lakh crore.
The growth in corporate tax collections has outpaced the increase in non-corporate tax collections, contributing significantly to the overall rise in direct tax receipts.
Government Targets Higher Direct Tax Revenue
The government expects to collect direct tax of Rs 26.97 lakh crore in the current fiscal year. This is 15 per cent higher than the Rs 23.40 lakh crore collected in FY26.
The latest data shows a steady beginning to direct tax collection in the current fiscal year, with an increase in the inflow of corporate tax collections and advance tax collections.
