India’s net direct tax collections increased 13.21% year-on-year to ₹13.38 trillion as of October 14 in FY27, supported by strong corporate tax receipts and a sharp rise in Securities Transaction Tax (STT) collections. The provisional figures released by the Income Tax Department indicate continued growth in tax revenues, even as higher refunds moderated the increase in net collections.
Gross direct tax collections stood at ₹16.03 trillion during the period, registering annual growth of 14.89%. However, refunds increased 24.22% to ₹2.65 trillion, compared with ₹2.13 trillion in the corresponding period last year.
Corporate tax continued to be a major contributor to direct tax revenue. Gross corporate tax collections rose 17% year-on-year to ₹7.53 trillion, while net collections increased 20.6% to ₹5.99 trillion after refunds.
According to the department’s data, corporate tax collections grew from ₹4.97 trillion in the corresponding period of FY26 to ₹5.99 trillion in FY27, representing year-on-year growth of 20.58%.
Non-corporate tax collections, which largely comprise personal income tax, grew at a slower pace amid a substantial increase in refunds. Gross collections increased 11.5% year-on-year to ₹8.03 trillion, while net collections rose 5.8% to ₹6.92 trillion from ₹6.54 trillion in the year-ago period.
Non-corporate taxes accounted for approximately 50.1% of gross direct tax collections, marginally higher than corporate tax’s share of 47%. STT and other taxes accounted for the remaining share.
STT emerged as the fastest-growing major component of direct tax revenue. Collections increased 51.6% to ₹46,840 crore from ₹30,902 crore in the year-ago period. In the department’s figures, STT collections rose from ₹0.31 trillion in FY26 to ₹0.47 trillion in FY27, registering growth of 51.58%.
The increase points to a significant contribution from securities market-related tax receipts to overall revenue growth.
Refunds under the non-corporate tax category amounted to ₹1.11 trillion during the period, compared with ₹66,550 crore a year earlier.
Commenting on the figures, Richa Sawhney, Partner – Tax at Grant Thornton Bharat, said the latest numbers reflected healthy tax buoyancy and broad-based growth across key revenue streams. She also highlighted the sharp increase in refunds, particularly for non-corporate taxpayers, as reflecting the administration’s focus on faster processing of taxpayer claims.
Overall, the figures point to continued growth in direct tax revenues, supported by corporate taxes and STT, alongside efforts to improve taxpayer services and facilitate refunds.
