India’s Net Direct Tax Collections Rise 13% to ₹12.1 Trillion

VoS NEWS DESK | ECONOMY | 20 September 2026

According to figures cited by Reuters, India's net direct tax collections rose by around 13% compared with the same period last year. The collection figure stood at about ₹12.1 trillion by 17 September, highlighting an increase in tax revenue received by the government during the opening months of the financial year.

Direct taxes include major revenue categories such as corporate income tax and personal income tax. Unlike indirect taxes, which are generally collected through transactions and consumption, direct taxes are imposed directly on taxpayers and businesses according to applicable tax rules.

The gross direct tax collection figure was considerably higher. Between 1 April and 17 September, gross direct tax receipts increased by more than 15% year-on-year to around ₹14.3 trillion, before accounting for refunds issued to taxpayers.

The difference between gross and net collections is important because the net figure takes refunds into account. As refunds increase, the amount retained by the government after those payments can grow at a different rate from the gross tax collection.

Figures released for the period also show that refunds have been substantial. The tax department's data cited in Indian reports showed refunds rising significantly compared with the corresponding period of the previous year. This helps explain the gap between the gross and net growth rates.

Corporate taxation remains an important component of the overall figures, while non-corporate tax receipts also contribute significantly. Non-corporate collections include taxes paid by individuals and other entities covered under the relevant tax framework.

The growth in securities transaction tax has also been notable. According to the figures reported in the source material, Securities Transaction Tax collections had increased substantially by 17 September compared with the corresponding period a year earlier.

The tax figures are being recorded during the first part of India's financial year, which runs from April to March. As a result, the current numbers do not represent the final tax position for the full 2026-27 financial year.

Several factors can influence the final annual collection figure, including corporate tax payments, individual income-tax payments, refunds, economic activity, investment levels and changes in taxable income.

The latest figures nevertheless provide an important indication of the amount of direct-tax revenue being collected by the government. A sustained increase in tax receipts can affect the government's available fiscal resources, although tax collection alone does not provide a complete picture of the wider economy.

Economic growth, consumer spending, employment, investment, government expenditure and inflation all influence the broader fiscal and economic environment. Therefore, the latest tax figures need to be considered alongside other economic indicators.

Future monthly releases from India's tax authorities will provide further information about whether the current pace of growth continues during the remainder of the financial year.

VoS STRATEGIC INSIGHT

India's net direct tax collections reached approximately ₹12.1 trillion by 17 September 2026, representing a year-on-year increase of around 13%. Gross direct tax collections rose by more than 15% to approximately ₹14.3 trillion during the same period.

The difference between gross and net collections reflects, among other factors, the impact of taxpayer refunds. Corporate and non-corporate tax collections both contributed to the overall figures.

The data covers only part of the 2026-27 financial year, so the final annual revenue position will depend on tax payments, refunds and economic activity during the remaining months.

Source: Reuters; Income Tax Department; The Economic Times.