Net Direct Tax Collections Reach ₹12.12 Lakh Crore as Refunds Climb Sharply

Net collection of direct taxes amounted to ₹12.12 lakh crore during the period from 1st April to 17th September 2021, which is 12.96 per cent higher than it was during the corresponding period of the previous year, the Central Board of Direct Taxes said on Friday. The highest increase came from the payments of corporate tax and advance tax; while refunds grew by 29.19 per cent to reach ₹2.20 lakh crore. The intake comes to about 45 per cent of the ₹26.97 lakh crore Budget target and is displaying broad-based buoyancy, say tax partners at EY and Grant Thornton.

Provisional data on Friday revealed that net direct tax collections in the country amounted to ₹12.12 lakh crore from April 1 to September 17, up 12.96 per cent compared to the same period last year. The exact figure was ₹12,12,410.71 crore, against ₹10,73,272.17 crore a year earlier.

The gross collections, excluding refunds, grew by 15.19 per cent to ₹14.32 lakh crore, compared to ₹12.55 lakh crore in the corresponding period last year.Gross collections (before refunds) rose 15.19 per cent to ₹14.32 lakh crore, from ₹12.55 lakh crore in the previous year. The increase in net collections was slowed by the growth in refunds.

Where did that money come from?

Net corporate taxes were up 19.48 per cent to ₹5.56 lakh crore from ₹4.65 lakh crore. Net non-corporate tax (individuals and Hindu Undivided Families) grew by 6 per cent to over ₹6.16 lakh crore from ₹5.81 lakh crore.

The advance tax increased by 16.18 per cent to reach the level of approximately ₹5.22 lakh crore. Corporate advance tax increased by 18.09 per cent to ₹4.16 lakh crore while non-corporate advance tax increased by 9.24 per cent to ₹1.06 lakh crore.

The collection of Securities Transaction Tax rose by around 53 per cent to ₹40,214.36 crore. The totals contain amounts of taxes paid by companies, individuals, HUFs, firms, associations of persons, bodies of individuals, local authorities and artificial juridical persons.

A note about the basis for comparison

The net figure of ₹10.73 lakh crore by the board is different from what was reported for the same period last September. The net collections in Business Standard were reported at ₹10.82 trillion with a refund of ₹1.60 trillion. The growth rates in the article apply to the current release.

The way analysts interpret the information

EY India tax partner Jayesh Sanghvi said the numbers showed robust buoyancy as the non-corporate tax contribution is 48.7 per cent of the gross contribution while the contribution from corporate tax is 48.5 per cent.

The nominal GDP has expanded by 10.3 per cent in the June quarter, while the Budget assumed 10 per cent growth, he said. This yields a gross buoyancy of about 1.47 and a net buoyancy of 1.26. Richa Sawhney, tax partner, Grant Thornton Bharat, said collections indicated robust underlying economic activity as well as strength of the tax base.

“It is a significant change from FY2025-26 when the net buoyancy was 1.01,” J. Jayesh Sanghvi, Tax Partner, EY India, said.

The reading was different last year. Gross collections had increased by 3.39 per cent till September 17, 2025; corporate advance tax had increased 6.11 per cent while non-corporate advance tax had decreased 7.30 per cent. PwC's Hitesh Sawhney said the slowdown in advance tax collections from non-corporate businesses and the base effect due to the robust collections in the previous year, were behind the moderation.

Against the Budget target

The government's target for direct tax collection in the current financial year is ₹26.97 lakh crore, 15 per cent more than the collection of ₹23.40 lakh crore in FY26. Net collections to date are about 45 per cent of that amount.

Growth in the non-corporate sector has been 6 per cent while the corporate sector has registered a growth of 19.48 per cent. The trend of gross collections and net collections will be determined by the speed of advance tax payments and the difference between gross collections and refunds till FY27.

Next advance-tax instalments are due in December and March. Meanwhile, the refund line will determine the amount of the gross gains that go to the Treasury.