New Delhi, Sep 18: India’s direct tax collections continued to gain momentum in the first half of the financial year, with net receipts crossing Rs 12.12 lakh crore by September 17, according to data released by the Central Board of Direct Taxes (CBDT).
Net direct tax collections grew 12.96 per cent from the same period last year. A significant part of the increase came from higher advance tax payments, suggesting that a larger share of tax liabilities is being paid during the financial year rather than being concentrated towards the end of the assessment cycle.
Advance tax collections rose 16.18 per cent to Rs 5.22 lakh crore. Corporate taxpayers contributed Rs 4.16 lakh crore, up 18.09 per cent, while advance tax payments from non-corporate taxpayers increased 9.24 per cent to Rs 1.06 lakh crore.
The corporate sector remained a major contributor to the government's tax revenue. Net corporate tax collections stood at about Rs 5.56 lakh crore, compared with Rs 4.65 lakh crore during the corresponding period last year. Net collections from non-corporate taxpayers, including individuals and Hindu Undivided Families, rose to Rs 6.16 lakh crore from Rs 5.81 lakh crore.
The numbers also reflect increased activity in the capital markets. Securities Transaction Tax collections jumped nearly 53 per cent to Rs 40,214.36 crore between April 1 and September 17. The increase also comes against a backdrop of higher STT rates on certain derivatives transactions introduced from April 1.
On a gross basis, direct tax collections rose 15.19 per cent to Rs 14.32 lakh crore during the period. However, the government also issued refunds worth more than Rs 2.20 lakh crore, a 29.19 per cent increase over the year-earlier period. After accounting for these refunds, net collections stood at Rs 12.12 lakh crore.
For taxpayers, the rise in refunds is an important part of the overall picture. Higher refunds mean that a greater amount of money collected during the tax process has been returned to eligible taxpayers, while the government continues to retain a substantial increase in net revenue.
The stronger flow of advance tax is particularly relevant for government finances because it provides a clearer picture of revenue coming in during the year. For companies, regular advance tax payments are linked to their estimated annual tax liability, while for the government they provide a more predictable revenue stream for fiscal planning.
The latest figures also offer an indication of the growing scale of formal economic activity. Corporate tax payments, personal income tax and securities-related tax collections together form an important part of the government's revenue base, connecting tax performance with activity across businesses, households and financial markets.
For businesses, a steady tax collection cycle can also bring greater predictability to government finances. Revenue visibility is important for planning public expenditure, infrastructure investment and other programmes that depend on the Centre's fiscal capacity.
At the same time, the government will need to watch how collections develop through the rest of FY27. The final revenue position will depend not only on the pace of tax payments but also on refunds, economic activity and the performance of businesses and financial markets in the coming months.
The September data therefore provides an early picture of India's revenue position for the current financial year. With net direct tax collections already above Rs 12 lakh crore and advance tax payments showing double-digit growth, the next instalments will be closely watched for signs of how firmly this momentum is sustained.
