Net Direct Tax Collections Rise 11.8% To ₹14.42 Trillion, Corporate Tax Leads

(MENAFN- Live Mint) 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.

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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.

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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%.

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