Net direct tax collection has increased 13.21 per cent to about Rs 13.38 lakh crore so far this financial year, reaching nearly 50 per cent of the full-year Budget target.
The growth in direct tax collection between April 1 and October 14 was driven by a robust 20 per cent rise in corporate taxes, despite a 67 per cent increase in refunds to non-corporate taxpayers, including individuals, firms and Hindu Undivided Families (HUFs).
Corporate tax collection leads growth
Net corporate tax collection grew 20.58 per cent to over Rs 5.99 lakh crore, while non-corporate tax collection rose 5.83 per cent to about Rs 6.92 lakh crore during the period.
The government has set a direct tax collection target of Rs 26.97 lakh crore for FY27, 15 per cent higher than the Rs 23.40 lakh crore collected in FY26. As of October 14, nearly half of the current financial year's target had been achieved.
On a gross basis, direct tax collection rose 15 per cent to Rs 16.03 lakh crore. This included corporate tax collection of Rs 7.53 lakh crore, non-corporate tax of Rs 8.03 lakh crore and securities transaction tax (STT) of Rs 46,840 crore.
STT collections surge amid market activity
STT collections increased around 52 per cent to Rs 46,840 crore by October 14, against a full-year Budget target of Rs 73,700 crore.
EY India Tax Partner Jayesh Sanghvi said net direct tax collection had reached around 50 per cent of the FY27 Budget Estimate in the first six-and-a-half months, indicating that collections appeared to be on track.
"The 51.6 per cent increase in STT collections points to continued activity in equity and derivatives markets despite global pressures. This growth has also been partly supported by the increase in STT rates on equity derivatives effective April 2026," Sanghvi said.
However, Deloitte India Partner Rohinton Sidhwa said the rise in STT collections was being driven primarily by rate hikes announced in Budget 2026 rather than an increase in market turnover.
Experts point to tax buoyancy and compliance
Price Waterhouse & Co LLP Partner Hitesh Sawhney said the collection figures reflected strong tax buoyancy and improved compliance.
"Net corporate tax collections growth indicates healthy business performance, while the continued rise in STT collections underscores sustained investor participation in financial markets. These collection trends are consistent with India's robust GDP growth," he added.
Nangia Global Senior Partner and India Tax Leader Aravind Srivatsan noted that corporate tax collections in India were growing faster than personal income tax collections globally.
"This shows the underlying resilience of the Indian economy and the ability to do better with the easing of global economic shocks," Srivatsan added.
Refunds rise 24 per cent year-on-year
According to data released by the Central Board of Direct Taxes (CBDT), refunds issued to corporate and non-corporate taxpayers rose 24 per cent year-on-year to Rs 2.65 lakh crore during the period.
Grant Thornton Bharat Partner - Tax Richa Sawhney said the latest figures reflected healthy tax buoyancy and broad-based growth. She also highlighted the sharp increase in refunds, particularly for non-corporate taxpayers, as a sign of the administration's focus on faster processing of taxpayer claims.