Net direct tax collections rise 7% to ₹12.92 lakh crore on higher corporate tax mop-up

India’s net direct tax collection rose 7% year-on-year to over ₹12.92 lakh crore so far this fiscal on higher corporate tax inflows and a sharp decline in refunds, official data showed.

Between April 1 and November 10, the government collected ₹12.92 lakh crore in net direct taxes, comprising corporate tax and personal income tax, compared with ₹12.08 lakh crore in the same period last year.

Gross direct tax collection, before accounting for refunds, stood at over ₹15.35 lakh crore, registering a modest 2.15% growth over the year-ago period.

Refunds issued during the period dropped 18% to over ₹2.42 lakh crore, compared with the same period in the previous fiscal, helping lift the net mop-up.

Corporate tax collection rose to about ₹5.37 lakh crore, up from ₹5.08 lakh crore a year earlier, while non-corporate tax, which includes individual and Hindu Undivided Family (HUF) contributions, increased to around ₹7.19 lakh crore from ₹6.62 lakh crore last year.

Securities Transaction Tax (STT) collections remained largely flat at ₹35,682 crore during the period, slightly lower than ₹35,923 crore in the corresponding period last year.

For the full 2025-26 fiscal year, the government has set a direct tax collection target of ₹25.20 lakh crore, a 12.7% growth over the previous year. It has also pegged STT receipts at ₹78,000 crore.

Commenting on the data, Rohinton Sidhwa, Partner, Deloitte India, said the data shows that, remarkably, non-corporate tax collections have kept pace in spite of the very significant rate cut last year. This is a very good sign, showing stronger growth of income levels. Refunds on the other hand have come down very significantly.

"STT collections have largely been flat -- reflecting the sideways movement of the indices. Given the IPO expansion there is potential there for more growth," Sidhwa said.