India’s net direct tax collections increased 11.76% year-on-year to ₹14.42 lakh crore between April 1 and November 10, 2026, according to provisional government data. The increase was supported by stronger corporate tax receipts and a sharp rise in securities transaction tax (STT), although higher tax refunds moderated the growth in net collections.
The government has collected approximately 53.5% of its full-year direct tax target of ₹26.97 lakh crore for FY27. Gross direct tax collections, before refunds, rose 14.02% to ₹17.50 lakh crore during the same period. The latest figures provide an indication of the government’s revenue position midway through the financial year and the contribution of businesses, individuals and stock market transactions to tax receipts.
Direct Tax Collection Reaches ₹14.42 Lakh Crore
Net direct tax collections stood at ₹14,41,978.91 crore as of November 10, compared with ₹12,90,204.10 crore during the corresponding period of FY26.
This represents an increase of approximately ₹1.52 lakh crore over the previous year.
The growth indicates that the government continues to receive higher direct tax revenue, although the pace differs across major tax categories.
| Tax collection metric | April 1–November 10, FY27 | Year-on-year growth |
|---|---|---|
| Net direct tax collection | ₹14.42 lakh crore | 11.76% |
| Gross direct tax collection | ₹17.50 lakh crore | 14.02% |
| Net corporate tax | ₹6.32 lakh crore | 17.84% |
| Net non-corporate tax | ₹7.56 lakh crore | 5.30% |
| Securities transaction tax | ₹54,078 crore | 51.56% |
| Tax refunds issued | ₹3.08 lakh crore | 25.91% |
The figures show that corporate tax collections and securities market-related receipts have been important contributors to revenue growth.
However, the slower increase in non-corporate tax collections suggests that personal income tax and other non-corporate receipts are expanding at a more moderate pace.
Government Achieves 53.5% of FY27 Direct Tax Target
The Union Budget has set a direct tax collection target of ₹26.97 lakh crore for FY27.
The target is approximately 15% higher than the ₹23.40 lakh crore collected during FY26.
With net collections reaching ₹14.42 lakh crore by November 10, the government has achieved around 53.5% of its annual target.
| Fiscal year | Direct tax collection |
|---|---|
| FY26 actual collection | ₹23.40 lakh crore |
| FY27 budget target | ₹26.97 lakh crore |
| FY27 collection till November 10 | ₹14.42 lakh crore |
| Share of FY27 target achieved | 53.5% |
To meet the full-year target, the government will need to collect another approximately ₹12.55 lakh crore during the remaining months of FY27.
The pace of collections in the coming quarters will depend on corporate profitability, personal income tax payments, advance tax instalments, tax compliance and the timing of refunds.
The current figures suggest that more than half the annual target has been achieved, but the government still needs to maintain revenue growth to meet its budget estimate.
Corporate Tax Collections Rise 18% to ₹6.32 Lakh Crore
Corporate taxes have been one of the strongest contributors to direct tax revenue growth.
Net corporate tax collections increased 17.84% year-on-year to ₹6.32 lakh crore as of November 10, compared with ₹5.36 lakh crore during the same period last year.
On a gross basis, corporate tax collections reached ₹8.01 lakh crore, up from ₹6.91 lakh crore.
The increase suggests that tax payments from companies have provided substantial support to the government’s revenue mobilisation efforts.
Corporate tax collections are closely linked to business profitability and the payment of advance taxes. Stronger corporate earnings can support higher tax receipts, although the relationship also depends on deductions, exemptions and the timing of tax payments.
The stronger performance of corporate taxes is particularly important because it has helped offset the slower growth in non-corporate tax receipts.
Non-Corporate Tax Collection Grows 5.3%
Net non-corporate tax collections increased 5.3% to ₹7.56 lakh crore during the April-November 10 period.
This category includes taxes paid by individuals, Hindu Undivided Families (HUFs), firms and other non-corporate entities.
The growth was considerably slower than the 17.84% increase in net corporate tax collections.
Gross non-corporate tax collections stood at approximately ₹8.94 lakh crore, compared with ₹8.08 lakh crore during the corresponding period of FY26.
One factor affecting the net figure was the increase in refunds issued under this category.
Non-corporate tax refunds rose to approximately ₹1.39 lakh crore, compared with ₹90,127 crore a year earlier.
The slower growth in net receipts therefore reflects both the increase in gross collections and the larger amount of refunds paid to taxpayers.
For the government, the performance of personal income tax and other non-corporate receipts will remain important in determining whether the annual direct tax target is achieved.
Securities Transaction Tax Collections Surge 52%
Securities transaction tax recorded the fastest growth among the major direct tax categories.
STT collections increased approximately 51.56% to ₹54,077.90 crore as of November 10, compared with ₹35,681.88 crore in the corresponding period last year.
STT is a tax imposed on specified transactions involving securities traded on recognised stock exchanges. It applies to eligible transactions involving shares, equity-oriented funds and certain other securities, depending on the applicable rules.
The increase in collections reflects the combined impact of transaction activity and changes in tax rates.
The Union Budget for FY26 increased STT rates on certain equity derivatives transactions, including futures and options. These higher rates have contributed to the increase in revenue from securities transactions.
The strong collection also highlights the importance of India’s capital markets as a source of government revenue.
However, STT receipts can fluctuate depending on trading volumes, market activity and changes in tax policy.
Tax Refunds Rise 26% to ₹3.08 Lakh Crore
Despite strong gross tax collections, the growth in net receipts was moderated by a substantial increase in refunds.
The government issued ₹3.08 lakh crore in direct tax refunds between April 1 and November 10, representing a 25.91% increase from approximately ₹2.45 lakh crore in the same period last year.
Refunds are payments made to taxpayers when the amount of tax already paid exceeds their final tax liability.
The increase in refunds explains why net direct tax collections grew by 11.76%, slower than the 14.02% growth recorded in gross collections.
| Refund metric | FY27 till November 10 | FY26 corresponding period |
|---|---|---|
| Total direct tax refunds | ₹3.08 lakh crore | ₹2.45 lakh crore |
| Year-on-year increase | 25.91% | — |
Higher refunds reduce the amount of revenue retained by the government after settling taxpayers’ eligible claims.
According to tax experts cited by Business Standard, refund outflows are generally higher during the first three quarters of the financial year. Stronger advance tax collections towards the final quarter could help support the government’s full-year revenue target.
Why Direct Tax Collections Matter for India’s Economy
Direct taxes are an important source of revenue for the central government.
Unlike indirect taxes, which are collected on the sale of goods and services, direct taxes are imposed directly on the income or profits of individuals and businesses.
The two major components are corporate income tax and personal income tax.
Revenue from these taxes helps finance government spending on infrastructure, healthcare, education, defence, welfare programmes and other public services.
Strong direct tax collections can also provide the government with greater fiscal flexibility.
When tax revenue grows in line with economic activity, the government may be better positioned to fund public investment without relying excessively on borrowing.
However, tax collection growth should be considered alongside other indicators, including nominal GDP growth, corporate earnings, household income, inflation and the government’s expenditure requirements.
The Bigger Picture
India’s direct tax collections are showing healthy growth, but the composition of revenue is changing. Corporate tax receipts are expanding considerably faster than non-corporate collections, while STT has emerged as one of the fastest-growing components. At the same time, higher refunds are reducing the growth in net revenue compared with gross collections. These trends offer a useful picture of how businesses, households and financial markets are contributing to government finances.
For the government, achieving the ₹26.97 lakh crore FY27 target will depend on maintaining tax collection momentum during the remaining months of the financial year. Strong corporate earnings and advance tax payments could provide support, but refund outflows and slower growth in individual tax receipts remain important factors. The final outcome will also influence the government’s fiscal planning and its ability to finance expenditure without increasing borrowing.
Looking Ahead
The government has collected approximately 53.5% of its FY27 direct tax target by November 10, leaving around ₹12.55 lakh crore to be collected during the rest of the financial year. Corporate tax collections and securities transaction tax have provided strong support, while the slower growth in non-corporate taxes and higher refunds have moderated overall net revenue growth. The next advance tax instalments and corporate tax payments will be important indicators of whether the government can maintain its current collection trajectory.
Investors and policymakers will continue monitoring tax receipts because they provide insight into business profitability, household income trends and financial market activity. If collections maintain a strong pace in the final months, the government could remain on track to meet its budget estimate. However, the 53.5% achievement at this stage should not be treated as a guarantee, as the final result will depend on economic conditions, tax payments and refunds throughout the remainder of FY27.
SEO Metadata
SEO Title: Net Direct Tax Collection Rises 12% to ₹14.42 Lakh Crore in FY27
Meta Description: India’s net direct tax collection rose 11.76% to ₹14.42 lakh crore by November 10, achieving 53.5% of the FY27 target of ₹26.97 lakh crore.
URL Slug: india-net-direct-tax-collection-rises-14-42-lakh-crore-fy27
Focus Keyphrase: India direct tax collection FY27
Secondary Keywords: Net direct tax collection, corporate tax collection India, personal income tax, securities transaction tax, FY27 tax target, Income Tax Department data
Get the day’s top stories in your inbox
One concise email. No spam, unsubscribe anytime.
