Direct tax collections gain 12.96% to Rs 12.12 lakh crore; advance tax up 16.18%

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 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.

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

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.

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. (ANI)