India’s net direct tax collections rose 12.96% year-on-year to ₹12.12 lakh crore between April 1 and September 17, 2026, according to data released by the Central Board of Direct Taxes (CBDT).
The increase was supported by stronger corporate tax receipts and higher advance-tax payments. However, refunds also increased significantly during the period, limiting the growth in net collections.
Gross direct tax collections before refunds stood at ₹14.32 lakh crore, registering a 15.19% increase from the corresponding period last year. Refunds issued during the period rose 29.19% to about ₹2.20 lakh crore.
Corporate Tax and Advance Tax Drive Growth
Corporate tax remained a major contributor to the increase in direct tax receipts. Net corporate tax collections climbed 19.48% to around ₹5.56 lakh crore, compared with ₹4.65 lakh crore during the same period last year.
Advance-tax collections also recorded strong growth. Total advance tax received by September 17 stood at approximately ₹5.22 lakh crore, up 16.18% year-on-year.
Corporate advance-tax payments increased 18.09% to ₹4.16 lakh crore, while non-corporate advance tax rose 9.24% to around ₹1.06 lakh crore. The September 15 advance-tax payment deadline was followed closely by the September 17 collection cut-off, making the timing significant for the latest numbers.
Net non-corporate tax collections, which include taxes from individuals and Hindu Undivided Families among other categories, increased 6% to more than ₹6.16 lakh crore.
STT Collections Jump, But Rate Changes Matter
Securities Transaction Tax (STT) collections also increased sharply. Net STT receipts reached ₹40,214.36 crore between April 1 and September 17, compared with ₹26,305.72 crore during the corresponding period last year.
The increase was more than 50%. However, the rise should not be viewed solely as evidence of higher market trading activity because STT rates on certain derivatives transactions were increased from April 1, 2026. The Union Budget 2026-27 specifically proposed raising the STT rate on futures to 0.05% from 0.02%.
What the Latest Tax Numbers Mean for Taxpayers
The 12.96% increase in India’s overall net direct tax collections does not mean individual taxpayers are automatically paying 13% more tax.
The national figure combines receipts from different categories of taxpayers, including companies, individuals, Hindu Undivided Families and other entities. An individual’s actual tax liability continues to depend on taxable income and the applicable provisions.
Refunds are also an important part of the latest data. The government issued around ₹2.20 lakh crore in refunds by September 17, up 29.19% from the year-ago period. Since refunds grew faster than gross collections, the increase in net receipts was lower than the growth in gross collections.
For individual taxpayers, the national collection figure does not itself create a new tax liability or change an existing tax payment. Personal tax matters need to be checked through the taxpayer’s own return and tax records.
India Nears Half of FY27 Direct Tax Target
The Union Budget 2026-27 has set the direct tax collection estimate at ₹26.97 lakh crore. With net collections of ₹12.12 lakh crore by September 17, the government has achieved roughly 45% of the full-year target.
The latest figure shows that a substantial portion of the annual target has already been collected, although the financial year is still ongoing. Future advance-tax instalments, corporate earnings, self-assessment tax payments and refunds will continue to influence the final net collection figure.
The pace of collections has also changed during the year. CBDT data showed net direct tax collections at ₹5.21 lakh crore by June 17 and ₹8.11 lakh crore by August 10. The September figure reflects additional advance-tax payments as well as the impact of higher refunds.
For taxpayers, the latest data primarily provide a picture of government revenue collection rather than a change in personal tax rates. The stronger corporate and advance-tax receipts have lifted overall collections, while higher refunds have moderated the increase in net revenue.