Daijiworld Media Network - New Delhi

New Delhi, Sep 18: India's net direct tax collection—comprising mainly corporate and income tax—recorded a robust 13 percent growth, surpassing the Rs 12.12 lac crore mark between April 1 and September 17 of the current financial year compared to the corresponding period last year, according to data released by the Central Board of Direct Taxes (CBDT) on Friday.

Gross direct tax collections climbed over 15 percent year-on-year to reach Rs 14.3 lac crore during the same timeframe. Corporate tax collections grew 19.48 percent to approximately Rs 5.56 lac crore, while personal income tax and collections from Hindu Undivided Families (HUFs) increased 6 percent to exceed Rs 6.16 lac crore. Additionally, Securities Transactions Tax (STT) collections jumped 53 percent to Rs 40,214 crore, and refund issuances surged by over 29 percent to cross Rs 2.2 lac crore.

Advance tax mop-up up to September 17 rose 16.18 percent to Rs 5.22 lac crore, driven by an 18 percent increase in advance corporate tax payments (Rs 4.16 lac crore) and a 9.24 percent rise in non-corporate advance tax payments (Rs 1.06 lac crore).

Meanwhile, India's fiscal deficit for the four-month period between April and July of FY27 stood at Rs 4.55 lac crore, accounting for 26.8 percent of the full-year target. This is lower than the Rs 4.7 lac crore deficit recorded during the same period last year, which constituted 29.9 percent of the annual estimate. The Centre has budgeted a fiscal deficit of Rs 16.96 lac crore (4.3 percent of GDP) for FY27, following a successful target of 4.4 percent in FY25-26.

Despite positive consolidation trends, concerns linger that a rising subsidy bill—driven by higher petroleum and fertilizer prices amid the West Asia crisis—could increase government expenditure and exert pressure on the fiscal deficit. A lower fiscal deficit generally strengthens economic fundamentals, reduces government borrowing, and frees up capital in the banking sector to boost corporate and consumer lending.