Direct tax mop-up rises 13% to Rs 12.12 lakh crore in H1 of FY27

Net direct tax collections for FY27 rose 12.96% to Rs 12.12 lakh crore as of Sept 17. Advance tax collections grew 16.18% to Rs 5.22 lakh crore, with corporate advance tax rising 18.09%. Gross collections stood at Rs 14.32 lakh crore.

Net direct tax collections rose 12.96 per cent year-on-year to Rs 12.12 lakh crore as of September 17 in the financial year 2026-27, while advance tax collections grew 16.18 per cent to Rs 5.22 lakh crore, according to data released by the Income Tax Department.

The latest figures show continued growth in tax collections in the first half of the financial year, with corporate advance tax recording a stronger increase of 18.09 per cent, while non-corporate advance tax rose 9.24 per cent.

Gross Collections and Refunds

Gross direct tax collections stood at Rs 14.32 lakh crore as of September 17, up 15.19 per cent from Rs 12.44 lakh crore a year earlier. However, refunds also increased significantly, rising 29.19 per cent to Rs 2.20 lakh crore from Rs 1.70 lakh crore. After accounting for refunds, net collections stood at Rs 12,12,410.71 crore, compared with Rs 10,73,272.17 crore as of September 17, 2025.

Breakdown of Tax Collections

Corporate vs Non-Corporate Tax

Corporate tax contributed Rs 5.56 lakh crore to net collections, up from Rs 4.65 lakh crore a year earlier, while non-corporate tax collections stood at Rs 6.16 lakh crore compared with Rs 5.81 lakh crore previously.

Securities Transaction Tax (STT)

Securities Transaction Tax (STT) collections also increased sharply, reaching Rs 40,214.36 crore from Rs 26,305.72 crore in the corresponding period last year.

Advance Tax Details

Advance tax collections, which provide an indication of tax payments made during the year ahead of final assessment, increased to Rs 5,21,940.72 crore from Rs 4,49,256.41 crore a year earlier.

Corporate advance tax collections rose to Rs 4,16,083.59 crore from Rs 3,52,351.59 crore, while non-corporate advance tax collections increased to Rs 1,05,856.69 crore from Rs 96,904.05 crore.

Analysis and Outlook

The data also highlights that the rise in refunds has partly moderated the growth in net collections. While gross collections grew 15.19 per cent, refunds increased at a faster 29.19 per cent pace, resulting in net collection growth of 12.96 per cent.

The pace of advance tax collections and the balance between gross collections and refunds will be key factors shaping the trajectory of net direct tax collections during FY27.

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