Direct Tax Collections Rise 8% to ₹17.04 Lakh Crore, Boosted by Strong Corporate Advance Tax

India’s direct tax collections have shown strong growth this financial year, with net collections rising 8% to ₹17.04 lakh crore as of 17 December 2025. The increase has been driven mainly by higher corporate tax payments and steady advance tax inflows.

According to official data, gross collections stood at ₹20.01 lakh crore compared to ₹19.21 lakh crore in the same period last year. Refunds issued to taxpayers fell to ₹2.97 lakh crore from ₹3.43 lakh crore a year ago. This decline in refunds has helped boost the net collections figure.

Corporate tax collections have played a major role in the rise. Companies contributed more through advance tax payments, which grew nearly 8% compared to last year. Non-corporate taxpayers, including individuals and firms, showed a slight dip of about 6.5% in advance tax payments. Overall, advance tax collections increased by 4.27%, reflecting stronger earnings among businesses.

The government’s data also highlights contributions from securities transaction tax and other smaller levies, which together added to the overall growth. While corporate payments have surged, the fall in refunds suggests better accuracy in tax filings or tighter refund processing.

Higher tax revenues give the government more room to spend on infrastructure, welfare schemes, and development projects. The steady growth in advance tax also indicates confidence among businesses about their earnings outlook.

Direct taxes, which include corporate tax and personal income tax, are a key source of revenue for the government. The latest figures show that India’s tax system is generating more resources even as compliance improves.

With net collections crossing ₹17 lakh crore well before the end of the financial year, the government is on track to meet its direct tax targets. The strong corporate tax mop-up is expected to remain a major driver of revenue growth in the months ahead.

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