Net direct tax collections rise 11.8% to ₹14.42 trillion, corporate tax leads

India’s net direct tax collections rose 11.76% to ₹14.42 trillion by 10 November in FY27. Corporate tax receipts led growth, increasing 17.8%, while faster refunds moderated net collections. 

India's net direct tax collections rose 11.76% year-on-year to ₹14.42 trillion as of 10 November in FY27, with corporate tax receipts providing the biggest boost, growing 17.8% to ₹6.32 trillion, provisional data from the Income Tax Department showed.

The growth in net corporate tax collections was more than three times the 5.3% increase in non-corporate tax receipts, which include taxes paid by individuals, Hindu Undivided Families (HUFs), firms and other entities. Non-corporate tax collections rose to ₹7.56 trillion from ₹7.18 trillion in the corresponding period last year.

Gross corporate tax collections increased 16% to ₹8.01 trillion, while gross non-corporate tax receipts grew 10.7% to ₹8.95 trillion, the data showed.

Tax collection

Gross direct tax collections rose 14.02% to ₹17.50 trillion from ₹15.35 trillion a year earlier. However, refunds issued by the department increased at a faster pace of 25.91% to ₹3.08 trillion, compared with ₹2.45 trillion in the corresponding period last year, moderating growth in net collections.

The Union budget for FY27 has pegged the government's net tax revenue at ₹28.67 trillion and the gross figure at ₹26.97 trillion. Collections of ₹17.50 trillion as of 10 November account for nearly 65% of the full-year target.

The increase in refunds was particularly pronounced in the non-corporate category. Non-corporate tax refunds rose nearly 54% to ₹1.39 trillion from ₹90,127 crore in the year-ago period. Corporate tax refunds increased 9.6% to ₹1.70 trillion from ₹1.55 trillion.

Securities transaction tax (STT) collections rose 51.6% to ₹54,078 crore from ₹35,682 crore a year earlier. The sharp increase comes amid a wider debate over India's capital market taxation, with the government examining stakeholder suggestions on changes to long-term capital gains (LTCG) tax and STT ahead of the Union budget for FY28.

The Union budget for FY27 has pegged gross direct tax collections at ₹26.97 trillion. Gross collections of ₹17.50 trillion as of 10 November account for nearly 65% of the full-year target.

The latest tax data comes against the backdrop of improving growth expectations for the Indian economy. Moody's Ratings on Wednesday raised India's FY27 growth forecast to 7% from 6.5%, citing broad-based economic expansion, resilient domestic demand and improving investment activity. The International Monetary Fund has also projected 7% growth for FY27, while the Reserve Bank of India expects the economy to expand 7.1%.

About the Author

Dhirendra Kumar is a seasoned policy reporter with about 20 years of experience in deep, on-ground reporting across key economic and governance sectors. His work spans finance, public expenditure, disinvestment, public sector enterprises, textiles, trade, consumer affairs, and agriculture, with a strong focus on uncovering structural policy shifts and their real-world impact.<br><br>Kumar has been awarded the Chaudhary Charan Singh Award for Excellence in Journalism in Agricultural Research and Development, recognising his contribution to reporting on critical issues in the farm sector. He has also been a recipient of a fellowship in international trade from the National Press Foundation, which has further strengthened his coverage of global trade dynamics and their implications for India.<br><br>Kumar is known for breaking complex policy developments into clear, accessible stories. His reporting focuses on uncovering under-reported trends, explaining policy shifts, and helping readers stay informed about developments that shape India’s economic landscape.