India’s net direct tax collections rose 7.19% year-on-year to Rs 22.8 lakh crore as of March 17 in the current financial year, led by robust growth in corporate tax receipts, according to official data.
Gross direct tax collections stood at Rs 27.14 lakh crore, up 4.86% from a year ago, while refunds declined 5.86% to Rs 4.34 lakh crore, aiding the rise in net collections.
Corporate tax remained the key driver of growth, with net collections rising to Rs 10.91 lakh crore from Rs 9.68 lakh crore in the year-ago period, an increase of about 12.8%. In contrast, personal income tax collections grew at a slower pace of 2.7% to Rs 11.32 lakh crore.
According to Jayesh Sanghvi, the strength in corporate tax collections reflects sustained profitability across sectors. “Corporate tax collections have remained robust in recent months, supported by strong profitability and reflected in advance tax growth of over 9.5%,” he said.
Advance tax collections for the current fiscal rose 6.42% to Rs 11.13 lakh crore, with corporate advance tax growing 9.54%, while non-corporate advance tax declined marginally by 1.78%.
Personal income tax collections are seeing relatively moderate growth. Sanghvi noted that the impact of recent tax rate revisions is yet to fully play out and will take time to reflect in collections. The government has budgeted for Rs 13.12 lakh crore from personal income tax in the current financial year.
Despite the uneven growth between corporate and personal taxes, the overall trajectory remains on track. “The current trend suggests that the revised estimate of ₹24.2 lakh crore for direct tax collections is likely to be achieved,” Sanghvi added.
The data indicates that while corporate earnings continue to underpin tax buoyancy, broader consumption-linked tax growth remains gradual, reflecting the lagged impact of policy changes and income trends.