Net direct tax collections rise over 9% in H1 FY26; corporate and non-corporate tax growth drives momentum

Corporate tax collection grew nearly 5% to ₹4.72 lakh crore, while non-corporate tax (NCT) surged 13.7% to ₹5.84 lakh crore. Securities Transaction Tax (STT) collection remained largely flat at ₹26,000 crore.
| Photo Credit:
Jerome Maurice

With refunds turning negative, net direct tax collections turned positive for the first time in four months in September, Income Tax Department data made public on Thursday showed.

According to data, net collection between April 1 and September 17 rose over 9 per cent to reach over ₹10.82 lakh crore. During this period, corporate tax collection rose nearly 5 per cent to reach over ₹4.72 lakh crore. At the same time, non-corporate tax (NCT) collection was around ₹5.84 lakh crore, showing a growth of around 13.7 per cent. NCT includes taxes paid by individuals, HUFs (Hindu Undivided Family), Firms, AoPs (Association of Persons), BoIs (Body of Individuals), Local Authorities and Artificial Juridical Persons.

Growth in the collection from Securities Transaction Tax (STT) was almost flat at over ₹26,000 crore.

Advance tax mixed; corporate up, non-corporate down

Data also showed that two instalments of advance tax collection rose nearly 3 per cent to reach over ₹4.48 lakh crore. Advance tax by corporate tax rose over 6 per cent to reach over ₹3.52 lakh crore. However, advance tax by NCT declined by over 7 per cent to less than ₹1 lakh crore.

For the current fiscal year, the budget estimates direct tax collection at ₹25.20 lakh crore, a projected growth of 12.35 per cent compared to the revised estimates of ₹22.37 lakh crore for FY25. Experts are still optimistic about meeting the budget target.  

Published on September 19, 2025