Direct tax kitty crosses Rs13 lakh crore as refunds climb

Mumbai: Net direct tax collection has increased 13.21 per cent to about Rs 13.38 lakh crore so far this financial year, reaching about 50 per cent of the full year budget target. The growth in direct tax collection between April 1 and October 14 this fiscal is driven by a robust 20 per cent growth in corporate taxes, despite a 67 per cent increase in refunds to non-corporate taxpayers, which include individuals, firms and HUFs.

Net corporate tax mop-up grew 20.58 per cent to over Rs 5.99 lakh crore, while non-corporate tax rose 5.83 per cent to about Rs 6.92 lakh crore so far this fiscal year. Securities transaction tax (STT) kitty swelled about 52 per cent to Rs 46,840 crore till October 14 of FY27. The budget target for STT is Rs 73,700 crore for the fiscal. The government has budgeted to collect Rs 26.97 lakh crore from direct taxes in the current financial year, a 15 per cent growth over Rs 23.40 lakh crore collected in FY26. Of this, Rs 13.38 lakh crore or close to 50 per cent of the budget target has already been achieved as on October 14. Price Waterhouse & Co LLP, Partner, Hitesh Sawhney, said the tax collection numbers reflect strong tax buoyancy and improved compliance.

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The Hans India