Centre’s net direct tax collection surges 23% to ₹8.11 trillion till Aug 10 | Economy & Policy News

Central government’s net direct tax collection rose 23.09 per cent annually to ₹8.11 trillion as of August 10, driven particularly by strong growth in non-corporate tax and Securities Transaction Tax (STT) receipts, even as refunds rose at a slower pace, provisional data released by the income-tax department on Tuesday showed.

 

This represents close to a third of the full year direct tax collection target of Rs 26.97 trillion.

 

Direct tax revenue collection so far this year has grown faster than the 15.25 per cent growth needed to achieve the full year target this year, compared to last fiscal’s actual collection.

 
 

Gross direct tax revenue collection stood at ₹9.55 trillion up to 10 August, registering an annual growth of 19.75 per cent. Refunds increased 3.79 per cent to ₹1.43 trillion during the period.

 

Corporate tax collections remained robust, with gross collections rising 14.34 per cent to ₹3.80 trillion, while net collections increased 19.83 per cent to ₹2.70 trillion after refunds.

 

Non-corporate tax collection, which mainly comprises tax on personal income, performed better, with gross collections increasing 22.29 per cent to ₹5.41 trillion and net collections rising 23.43 per cent to ₹5.07 trillion.

 

“The data shows strong growth in gross non-corporate taxes and STT collections, and a slowdown in refunds. This is leading to 23 per cent growth in net collections. It is expected, however, that the pace of refunds will increase over the next few months. However, gross corporate tax collections, on the other hand, are growing at a more modest 14 per cent,” said Rohinton Sidhwa, Partner, Deloitte India.

 

The non-corporate tax numbers are expected to improve further, as the due date for filing returns by individuals having business or professional income has been extended to August 31, 2026, said Hitesh Sawhney, Partner, Price Waterhouse & Co LLP.

 

Securities Transaction Tax (STT) collections continued to be particularly buoyant, rising 51.31 per cent to ₹33,824 crore, compared with ₹22,354 crore in the corresponding period last year.

 

The growth in STT collections has been supported by sustained activity in the capital markets and the revised STT rates applicable to futures and options, Sawhney said.

 

“Overall, the latest figures indicate that direct tax collection is on a firm footing, with both corporate and non-corporate taxes contributing meaningfully to growth. The performance so far provides a positive base for the remainder of FY27,” he said.

 

For FY27, the government has budgeted ₹26.97 trillion in direct tax collections.

 

The actual net direct tax collection for FY26 was ₹23.40 trillion, which was lower than the revised estimate of ₹24.21 trillion for the year. The shortfall was around ₹81,000 crore.