India's net direct tax collections climbed 16.4% to ₹6.51 lakh crore between April 1 and July 13, 2026. This growth is led by a 22% rise in corporate tax and a 47.8% jump in Securities Transaction Tax, reflecting high corporate profitability and active equity markets.
India’s fiscal performance shows steady momentum as net direct tax collections reached ₹6.51 lakh crore for the period starting April 1, 2026, through July 13, 2026. This represents a 16.4% increase compared to the same period in the previous financial year, according to data released by the Income Tax Department today.
The government's direct tax revenue is primarily composed of corporate tax and personal income tax. Corporate tax collections were a major driver of this growth, rising 22% to reach ₹2.40 lakh crore. This suggests that Indian companies are reporting healthy profits, which is a key indicator of corporate health in the current economic environment. Personal income tax collections, which include taxes paid by individuals, rose by 11.6% to ₹3.84 lakh crore.
Equity Market Activity Boosts Tax Revenue
A notable highlight in the recent data is the 47.8% surge in Securities Transaction Tax (STT) collections, which hit ₹26,429 crore. STT is a tax levied on the purchase and sale of shares and derivatives on Indian stock exchanges. The sharp increase in this tax collection serves as a direct indicator of higher trading volumes and increased value in the equity markets during the first quarter of the fiscal year.
The gross direct tax collection, which is the total amount collected before accounting for refunds, stood at ₹7.73 lakh crore, reflecting a year-on-year increase of 16.11%. The tax authorities also issued refunds worth ₹1.22 lakh crore during this period, which is 14.57% higher than the ₹1.06 lakh crore refunded in the same period last year. A higher refund amount typically indicates that the tax department is processing returns more efficiently.
For investors and market observers, these tax figures provide insight into the underlying economic activity. Sustained growth in corporate and personal tax collections often aligns with broader trends in economic output and consumption. The next key monitorable will be whether this momentum continues through the second quarter, as tax collections often fluctuate based on seasonal payment schedules and overall macroeconomic conditions, including interest rate cycles and global demand patterns.