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India's Direct Tax Take Climbs 15.2% to Rs 14.3 Lakh Crore

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India's direct tax collections rose 15.2% to Rs 14.3 lakh crore by Sept 17, led by an 18.1% jump in corporate advance tax payments.

India's direct tax collections rose 15.2% to Rs 14.3 lakh crore in the current financial year through September 17, according to figures put out by the income tax authorities in New Delhi. The gain was led by companies, whose tax payments expanded faster than those from individuals.

Advance tax, whose second instalment fell due by September 15, showed a modest improvement. Total advance tax receipts climbed 16.2% to Rs 5.2 lakh crore, up from the 15.3% pace recorded when the first instalment was paid in June.

Corporate payers accounted for most of that momentum. Their advance tax outgo is estimated to have risen 18.1% to just under Rs 4.2 lakh crore, ahead of the 16% growth seen in June. Payments from individuals moved in the opposite direction, with growth easing to 9.2% from 12.8% earlier, taking personal income tax to about Rs 10.6 lakh crore after the second instalment.

Because advance tax tracks how businesses expect to perform, the quicker rise in corporate figures signals confidence in stronger profits during the July-September quarter, helped by robust sales in several parts of the economy.

Refunds jumped sharply over the same period, climbing 29.2% to Rs 2.2 lakh crore. Refunds to individual taxpayers more than doubled to Rs 81,439 crore. Even with that larger payout, net collections still advanced 13% to Rs 12.1 lakh crore.

Hitesh Sawhney, a partner at Price Waterhouse & Co, said the numbers reflected both strength and durability, pointing to healthier gross inflows, better compliance and steady economic and market activity. He described the continued rise in net collections, despite the surge in refunds, as the most heartening takeaway from the data.

direct tax collections, corporation tax, advance tax India, personal income tax, tax refunds, net direct tax, Indian economy, second quarter profits

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