India’s Direct Tax Collections Rise 13% to ₹12.12 Lakh Crore

India’s net direct tax collections rose 13% year-on-year to about ₹12.12 lakh crore between April 1 and September 17, 2026, according to data released by the tax authorities. The increase comes as corporate and individual taxpayers make higher advance-tax payments during the current financial year.

Gross Direct Tax Collections Cross ₹14 Lakh Crore

On a gross basis, direct tax collections increased by about 15.2% to ₹14.3 lakh crore during the same period.

Direct taxes include corporate income tax and personal income tax, making the figures an important indicator of government revenue mobilisation during FY 2026–27.

The difference between gross and net collections reflects the impact of tax refunds issued during the period.

Advance Tax Payments Provide a Major Boost

One of the main drivers of the increase has been stronger advance-tax payments.

Advance tax collections rose 16.18% to around ₹5.22 lakh crore through September 17. Corporate advance-tax payments increased about 18% to more than ₹4.16 lakh crore, while non-corporate advance tax grew 9.24% to roughly ₹1.06 lakh crore.

The second instalment of advance tax for the financial year was due on September 15, making the latest figures particularly significant.

Refunds Also Rise Sharply

Tax refunds have also increased.

Refund issuance jumped 29.19% to more than ₹2.20 lakh crore through September 17, according to data reported from the Central Board of Direct Taxes (CBDT).

Despite the substantial increase in refunds, net direct-tax revenue remained higher than the corresponding period last year.

What the Numbers Mean for Government Revenue

The rise in direct-tax collections gives the government a larger revenue base during the first half of FY 2026–27.

The Union Budget for 2026–27 estimates ₹26.97 lakh crore in direct-tax revenue for the full financial year. The ₹12.12 lakh crore collected through September 17 therefore represents roughly 45% of the annual budget target.

However, collections during the first half of a financial year cannot simply be extrapolated to determine the final annual outcome because tax payments, refunds and advance-tax schedules vary across the year.

Corporate Tax Growth Stands Out

Corporate tax payments have been an important contributor to the latest increase.

The stronger corporate advance-tax numbers suggest that companies have been contributing more through advance payments compared with the same period last year.

The tax data provides a measure of government revenue collection, but it should not by itself be treated as a complete measure of economic growth. Corporate profits, tax compliance, assessment activity, refunds and changes in tax rules can all influence collections.

India’s Fiscal Picture

The latest direct-tax numbers come as the government continues to balance revenue mobilisation with expenditure and investment requirements.

For FY 2026–27, the Union Budget estimates total gross tax revenue at ₹44.04 lakh crore, with direct taxes accounting for about 61.2% of the total.

As more advance-tax instalments and other tax payments are recorded later in the financial year, the trajectory of direct-tax collections will provide further information about government revenues and corporate and individual tax payments.

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