India's net direct tax collection has increased by 23.09% to ₹8.11 lakh crore as of August 10 in the current financial year, according to the latest data released by the Income Tax Department. The collections stood at ₹6.59 lakh crore during the same period last year, highlighting a significant improvement in tax revenue.
The growth was mainly driven by a sharp rise in non-corporate tax collections, which include personal income tax. These collections increased by around 23.4% to ₹5.07 lakh crore, indicating stronger income growth and better tax compliance among individuals and businesses.
Meanwhile, net corporate tax collections also registered healthy growth, rising 19.83% to nearly ₹2.70 lakh crore during the same period. The figures suggest continued profitability among companies despite global economic uncertainties.
The Securities Transaction Tax (STT) recorded one of the strongest performances, with collections increasing by about 51% to ₹33,824 crore, reflecting sustained activity in India's stock markets.
Government data also showed that income tax refunds worth ₹1.43 lakh crore were issued between April 1 and August 10, an increase of nearly 3.8% compared with the corresponding period of the previous financial year.
The strong rise in direct tax collections is seen as a positive indicator of India's economic resilience, improving tax compliance, and steady growth in business and personal incomes. It also strengthens the government's fiscal position as it works toward achieving its annual revenue targets.
