Net direct tax collections in India rise 14.64% to Rs 5.21 lakh crore

Net direct tax collections in India have surged by 14.64% to over Rs 5.21 lakh crore as of June 17 in the current financial year, according to government data released on Thursday. This growth has been driven by robust advance tax payments from companies and higher Securities Transaction Tax (STT) collections, indicating strong corporate profitability and market activity.

Net corporate tax collections witnessed a significant increase of 22%, reaching Rs 2.08 lakh crore during this period. Meanwhile, net non-corporate tax collections, which include taxes paid by individuals, Hindu Undivided Families (HUFs), and firms, rose by 8% to approximately Rs 2.94 lakh crore.

Collections from STT recorded an impressive jump of 45%, amounting to Rs 18,856 crore. Advance tax collections, often considered a key indicator of business performance, grew by 15.30% to exceed Rs 1.78 lakh crore.

Breaking down the advance tax figures further, corporate advance tax payments increased by 16% to over Rs 1.40 lakh crore, while advance tax collections from non-corporate taxpayers rose by 13% to Rs 37,620 crore.

Refunds worth Rs 89,026 crore were issued as of June 17, marking a modest rise of 1.19% compared to the same period last year. On a gross basis, direct tax collections increased by 12.46% to surpass Rs 6.10 lakh crore.