India's net direct-tax collections rise 13% to Rs 12.10 lakh crore on strong advance-tax growth
India's net direct-tax collections saw a nearly thirteen percent rise. Advance tax payments grew over sixteen percent, boosting overall collections significantly. Corporate advance tax collections increased by over eighteen percent year-on-year. Gross direct tax collections rose fifteen percent, while refunds also jumped. These figures indicate strong economic activity and taxpayer confidence.
India's net direct-tax collections increased by nearly 13% in September 2023, reaching ₹12.10 lakh crore, according to data released by the Central Board of Direct Taxes (CBDT). The rise was primarily driven by a 16.18% growth in advance-tax payments, which amounted to ₹5.22 lakh crore. Experts believe that despite global challenges, current-year income and corporate profit growth remain strong, and the government may easily achieve its target of an 8% increase in direct tax collections for the current financial year.
Richa Sawhney, a tax partner at Grant Thornton Bharat, noted that the steady growth in advance-tax payments reflects healthy economic activity and the robustness of the tax base. Advance tax payments, based on taxpayers' income assessments, serve as an early indicator of the tax base's health and economic activity. Corporate advance tax surged 18.09% to ₹4.16 lakh crore, while non-corporate advance tax grew 9.24% to ₹1.06 lakh crore.
Gross direct-tax collections, excluding refunds, rose 15.19% to ₹14.32 lakh crore, while refunds surged 29.19% to ₹2.20 lakh crore. The increase in refunds, particularly in the non-corporate segment, more than doubled to ₹81,439 crore from ₹39,866 crore. Despite this, net tax collections remain robust, driven by stronger gross tax inflows, improved compliance, and sustained economic activity.
Securities transactions tax (STT) collections jumped 53% to ₹40,214 crore, largely attributed to increased futures trading and retail participation following Budget 2026 rate hikes.
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