Refunds jump 24% to Rs 2.65 lakh crore, while STT collections surge 52%. (File Image)

New Delhi: The government on Thursday said that net direct tax collection has increased 13.21 per cent to about Rs 13.38 lakh crore so far this financial year, reaching about 50 per cent of the full-year budget target. The growth in direct tax collection between April 1 and October 14 this fiscal is driven by a robust 20 per cent growth in corporate taxes, despite a 67 per cent increase in refunds to non-corporate taxpayers, which include individuals, firms and HUFs, according to the finance ministry.

“Net corporate tax mop-up grew 20.58 per cent to over Rs 5.99 lakh crore, while non-corporate tax rose 5.83 per cent to about Rs 6.92 lakh crore so far this fiscal year. Securities transaction tax (STT) kitty swelled about 52 per cent to Rs 46,840 crore till October 14 of FY27. The budget target for STT is Rs 73,700 crore for the fiscal year,” the ministry said.

The government has budgeted to collect Rs 26.97 lakh crore from direct taxes in the current financial year, a 15 per cent growth over Rs 23.40 lakh crore collected in FY26. “Of this, Rs 13.38 lakh crore or close to 50 per cent of the budget target has already been achieved as on October 14,” it said.

Price Waterhouse & Co LLP, Partner, Hitesh Sawhney, said the tax collection numbers reflect strong tax buoyancy and improved compliance. “Net corporate tax collections growth indicates healthy business performance, while the continued rise in STT collections underscores sustained investor participation in financial markets. These collection trends are consistent with India's robust GDP growth,” he added.

As per the data released by the Central Board of Direct Taxes (CBDT), refund issuances to both corporate and non-corporate taxpayers soared 24 per cent year-on-year to Rs 2.65 lakh crore during the period. “While globally, personal income tax has outpaced corporate tax growth, in India, corporate tax collections continue to grow at the faster rate,” Nangia Global, senior partner and India tax leader Aravind Srivatsan said, adding that this shows the underlying resilience of the Indian economy and the ability to do better with the easing of global economic shocks. 

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