Higher Tax Collections Driven by Advance Payments

Direct tax collections have increased significantly in the current financial year, supported by improved advance tax payments from corporate taxpayers. As of September 17, net direct tax collections stood at ₹12.12 lakh crore, around 13% higher than the corresponding period last year. According to Central Board of Direct Taxes (CBDT) data, advance tax collections rose 16% to ₹5.22 lakh crore. Corporate payments increased 18% to ₹4.16 lakh crore, while non corporate payments grew 9% to ₹1.06 lakh crore. Refunds issued during the period increased 29% to ₹2.20 lakh crore, while gross direct tax collections rose 15% to ₹14.32 lakh crore.

Securities Transaction Tax (STT) collections increased 53% to ₹40,214 crore between April 1 and September 17. Deloitte India partner Rohinton Sidhwa said the increase was mainly due to the higher STT rates announced in the Budget rather than an increase in transaction turnover. AKM Global managing partner Amit Maheshwari said the rise in corporate and advance tax collections indicates that business activity remains steady. Against ₹23.40 lakh crore collected in the previous financial year, the Centre has set a direct tax collection target of ₹26.97 lakh crore for the current financial year.