India’s direct tax collections recorded 13% growth, while Securities Transaction Tax (STT) revenue jumped 52%, highlighting stronger government tax receipts from income, corporate earnings and securities transactions.
Highlights
- India’s direct tax collections increased by 13%, reflecting growth in government tax revenue.
- Securities Transaction Tax (STT) collections surged 52%.
- STT is levied on specified transactions involving securities, including equity shares and derivatives.
- Higher STT receipts may reflect changes in trading activity, transaction values and tax rates.
New Delhi, October 16, 2026: India’s direct tax collections have registered a 13% increase, while Securities Transaction Tax (STT) revenue has surged 52%, according to figures reported in the financial press. The increase highlights stronger government tax receipts and a sharp rise in revenue generated from taxable securities transactions.
Direct taxes are an important source of revenue for the central government. They primarily include income tax paid by individuals and corporate tax paid by businesses. Stronger collections can help the government finance public expenditure, infrastructure development and welfare programmes.
What Is Driving Direct Tax Growth?
The 13% increase in direct tax collections suggests positive momentum in the government’s revenue receipts.
Growth in salaries, business profits, tax compliance and advance tax payments can contribute to higher collections. However, the exact contribution of these factors to the latest increase has not been established in the figures provided.
Higher tax receipts can also provide the government with greater flexibility in managing expenditure and maintaining fiscal discipline.
Corporate Tax Collections Rise Over 20%
Corporate tax collections were among the strongest contributors to direct tax growth.
Net corporate tax revenue increased 20.58% to approximately ₹5.99 lakh crore during April 1–October 14, 2026.
Meanwhile, non-corporate tax collections, including taxes paid by individuals, firms and Hindu Undivided Families, grew 5.83% to around ₹6.92 lakh crore.
STT Collections Jump 52%
Securities Transaction Tax collections increased 51.6% year-on-year to ₹46,840 crore.
The sharp rise was partly supported by increased tax rates on equity derivatives, which came into effect on April 1, 2026.
The STT rate on futures transactions increased from 0.02% to 0.05%, while the rate on options premiums rose from 0.10% to 0.15%.
Market activity and higher tax rates both contributed to stronger collections.
Tax Refunds Increase 24%
Despite higher tax collections, the government also processed substantially more refunds.
Total refunds increased 24.22% to ₹2.65 lakh crore, compared with approximately ₹2.13 lakh crore during the corresponding period last year.
Gross direct tax collections, before adjusting for refunds, increased 14.89% to ₹16.03 lakh crore.
Government Reaches Nearly Half of FY27 Tax Target
The government has set a direct tax collection target of ₹26.97 lakh crore for FY2026-27.
By October 14, net collections had reached approximately 49.6% of that target.
The performance indicates encouraging revenue growth, although collections during the remaining months will determine whether the government achieves its annual target.
