Direct Tax Collections Cross ₹5.21 Lakh Crore; Advance Tax Growth Remains Strong

Government data released up to 17 June 2026 indicates continued growth in direct tax collections during the current financial year, supported by higher corporate tax payments, robust advance tax collections, and increased Securities Transaction Tax (STT) receipts.

Net direct tax collections stood at more than ₹5.21 lakh crore, reflecting a growth of 14.64% compared to the corresponding period of the previous year. The increase has been attributed primarily to improved advance tax payments and stronger market-related tax collections.

Among the major components, net corporate tax collections recorded a growth of 22%, reaching approximately ₹2.08 lakh crore. Net non-corporate tax collections, covering taxes paid by individuals, Hindu Undivided Families (HUFs), and firms, rose 8% to around ₹2.94 lakh crore.

Collections under Securities Transaction Tax (STT) registered significant growth, increasing 45% to ₹18,856 crore, indicating sustained activity in capital markets.

Advance tax collections, which are widely monitored as an indicator of economic and business performance, increased 15.30% to over ₹1.78 lakh crore. Corporate taxpayers contributed substantially to this growth, with corporate advance tax payments rising 16% to more than ₹1.40 lakh crore. Advance tax collections from non-corporate taxpayers also recorded healthy growth of 13%, reaching ₹37,620 crore.

The Income Tax Department issued refunds amounting to ₹89,026 crore up to 17 June 2026, representing an increase of 1.19% over the corresponding period last year.

On a gross basis, direct tax collections exceeded ₹6.10 lakh crore, reflecting a growth of 12.46%. Gross corporate tax collections crossed ₹2.76 lakh crore, while gross non-corporate tax collections were reported at approximately ₹3.15 lakh crore.

For FY 2026-27, the Union Government has set a direct tax collection target of ₹26.97 lakh crore, representing an expected growth of about 15% over the ₹23.40 lakh crore collected during FY 2025-26.

Tax experts have observed that the latest collection trends indicate improvement in revenue performance, supported by stronger advance tax payments from businesses and higher market-linked tax collections. The growth in advance tax receipts is also being viewed as a positive indicator of business activity, corporate profitability, and taxpayer confidence during the early part of the financial year.