India’s direct tax collections have started FY 2026-27 on a strong note, with net direct tax collections rising by 14.64% year-on-year to ₹5.21 lakh crore as on June 17, 2026. The growth has been driven by robust collections from both corporate and non-corporate taxpayers, along with a significant increase in advance tax payments.
According to the latest data released by the Income Tax Department, gross direct tax collections for FY 2026-27 stood at ₹6,10,050.53 crore, compared to ₹5,42,478.57 crore collected during the corresponding period of the previous financial year, reflecting a growth of 12.46%.
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Net Collections Cross ₹5.21 Lakh Crore
After adjusting for refunds issued during the period, net direct tax collections reached ₹5,21,024.82 crore, registering a robust 14.64% growth over the net collections of ₹4,54,499.18 crore recorded as on June 17, 2025.
The data indicates healthy growth across major tax categories:
| Category | FY 2025-26 (₹ Cr) | FY 2026-27 (₹ Cr) |
| Corporate Tax | 1,70,071.09 | 2,08,233.47 |
| Non-Corporate Tax | 2,71,157.81 | 2,93,937.56 |
| Securities Transaction Tax (STT) | 13,013.02 | 18,856.12 |
| Total Net Collection | 4,54,499.18 | 5,21,024.82 |
A notable feature of the data is the sharp increase in Securities Transaction Tax (STT) collections, which rose to ₹18,856.12 crore from ₹13,013.02 crore a year earlier.
Refunds Increase Marginally
The Income Tax Department issued refunds worth ₹89,025.71 crore during the period, compared to ₹87,979.39 crore in the corresponding period of FY 2025-26, reflecting a modest growth of 1.19%.
Refunds accounted for:
- Corporate Tax Refunds: ₹68,304.99 crore
- Non-Corporate Tax Refunds: ₹20,715.51 crore
- Other Tax Refunds: ₹5.21 crore
The relatively moderate increase in refunds helped support stronger growth in net collections.
Advance Tax Collections Show Strong Momentum
One of the most significant indicators in the latest release is the performance of advance tax collections.
Advance tax collections up to June 17, 2026 stood at ₹1,78,373.06 crore, registering a growth of 15.30% over the corresponding figure of ₹1,54,706.02 crore recorded last year.
The break-up is as follows:
| Category | FY 2025-26 (₹ Cr) | FY 2026-27 (₹ Cr) | Growth |
| Corporate Advance Tax | 1,21,333.03 | 1,40,752.74 | 16.01% |
| Non-Corporate Advance Tax | 33,372.99 | 37,620.32 | 12.73% |
| Total Advance Tax | 1,54,706.02 | 1,78,373.06 | 15.30% |
The stronger growth in corporate advance tax collections is being viewed as an early signal of healthy corporate profitability and sustained economic activity during the current financial year.
Positive Signal for Revenue Collections
The strong double-digit growth in both net direct tax collections and advance tax receipts suggests improving tax compliance and continued economic momentum. The performance also provides an encouraging start to the first year of implementation of the new Income-tax Act, 2025 framework, which became effective from April 1, 2026.
With net collections already crossing the ₹5.21 lakh crore mark in the first quarter of the fiscal year, the government has received an early boost to its revenue position, while the healthy advance tax numbers indicate confidence among businesses and taxpayers regarding income growth during FY 2026-27.
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