Corporate advance tax payments and higher securities transaction tax collections boost revenue in early FY27
New Delhi (Economy India): India’s net direct tax collection rose 14.64 per cent year-on-year to over ₹5.21 lakh crore as of June 17 in the current financial year, reflecting strong economic activity and healthy corporate profitability.
According to official data released by the Income Tax Department, net corporate tax collection increased by 22 per cent to ₹2.08 lakh crore during the period under review.
Net non-corporate tax collection, which includes taxes paid by individuals, Hindu Undivided Families (HUFs), partnership firms and other entities, grew 8 per cent to approximately ₹2.94 lakh crore.
The strong growth in direct tax collections was largely supported by higher advance tax payments made by corporates during the first quarter of FY2026-27.
Securities Transaction Tax Sees Sharp Rise
Revenue from Securities Transaction Tax (STT) recorded a sharp increase of 45 per cent, reaching ₹18,856 crore.
The surge in STT collections reflects sustained activity in India’s equity markets, supported by strong retail participation and robust trading volumes.
Market experts said resilient corporate earnings, expanding formalisation of the economy and improved tax compliance continue to support direct tax growth.
Positive Signal for Fiscal Health
Higher direct tax collections provide additional fiscal space for the government by improving revenue visibility and reducing dependence on indirect taxes.
Strong tax buoyancy also indicates continued momentum in economic growth despite global uncertainties.
The healthy growth in corporate tax receipts suggests that businesses have maintained profitability levels, while the increase in non-corporate tax collections points to stable income growth among individuals and smaller enterprises.
Economists believe sustained growth in direct tax collections will strengthen the government’s ability to maintain fiscal discipline while continuing to invest in infrastructure and social welfare programmes.
