Direct tax collections are growing very well through strong economic activity, tax compliance and revenue mobilisation in India has risen by double digits in fiscal year 2026-27. The numbers were collected up to July 13, 2026 with gross and net direct tax collections increasing by 16% and 16% respectively.
Total DT collections were at around 7,73,681.68 crore, which is 16.11% higher than 6,66,337.20 crore for the same period of FY 2025-26. In addition to refunds to the taxpayers, Net Direct Tax collections were 6,51,189.81 crore, up 16.40% from 5,59,424.72 crore for the same period last year.
Corporate tax collections remained the major driver of the growth. Gross corporate tax receipts increased from ₹2,90,130.54 crore in FY 2025-26 to ₹3,35,386.27 crore in the year-on-year data, indicating the profitability of companies and good compliance. Non-corporate tax collections (which include taxes paid by individuals, Hindu Undivided Families (HUFs), firms, Associations of Persons (AoPs), Bodies of Individuals (BoIs) and local authorities) also saw a good growth from ₹3,58,058.12 crore to ₹4,11,853.80 crore.
The Securities Transaction Tax (STT) saw one of the sharpest increases. Collections rose from 17,875.88 crore to 26,428.96 crore, indicating the continued participation of investors and high volume of trading in India's capital markets.
Income Tax Department also kept a very strong focus on taxpayers’ services. Refunds of ₹1,22,491.87 crore were issued until July 13, 2026, compared to 1,06,912.48 crore from the same period last year, which is a 14.57% increase. The quicker refund processing continues to increase liquidity for a business and for individual taxpayers, and is also a confidence builder for tax administration.
After refunds, net corporate tax collections rose to ₹2,40,241.64 crore, net non-corporate tax collections rose to ₹3,84,521.23 crore. The growth in personal income tax and tax payments from non-corporate entities indicates increased employment growth, improved income and a broader tax base.
The recent data also indicate that India's economy remains strong even in uncertain times. Higher advance tax payments, better TDS collections, widespread digital filing, and technology-enabled tax administration have all helped to boost compliance. And the financial market is still strong and has helped to drive up STT collection.
As only the first few months of FY 2026-27 are completed for the administration the tax performance of this government will give it a good basis to achieve the revenue targets at the end of each year. Healthy direct tax collections are essential to finance infrastructure, health care, education, social welfare schemes and other development projects and fiscal policy. If the momentum continues, FY 2026-27 is expected to see another year of strong direct tax growth and will further boost India’s economic picture.
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