Advance tax collections for FY26 up 6.42% to ₹11.13 trn, shows I-T data
New Delhi, Mar 18, 2026
Net direct tax collection for FY26 as of March 17 grew 7.19 per cent to ₹22.80 trillion, driven by higher corporate and non-corporate taxes (NCT)
Advance taxes for financial year 2025-26 as of March 17 came in at Rs 11.13 trillion, an increase of 6.42 per cent over the previous fiscal, data released by the income tax department on Wednesday showed. Corporate tax (CT) accounted for Rs 8.29 trillion of the total, while non-corporate tax (NCT) generated Rs 2.83 trillion. Corporate advance tax registered an increase of 9.54 per cent; however, advance tax for non-corporates dipped 1.78 per cent for FY26.
"While the growth in advance tax for corporate taxes appears relatively healthy, we are watchful of the unfolding impact of the West Asia crisis on availability and pricing of inputs as well as profitability in certain sectors," said Aditi Nayar, chief economist at ICRA.
Net direct tax collection for FY26 as of March 17 grew 7.19 per cent to Rs 22.80 trillion, driven by higher corporate and non-corporate taxes (NCT). The latter includes taxes paid by individuals, Hindu Undivided Families (HUFs), firms, bodies of individuals, associations of persons, local authorities, and artificial judicial persons.
Net direct tax for corporates stood at Rs 10.91 trillion for FY26, an increase of while that for NCTs was marginally higher at Rs 11.32 trillion,
Gross tax collections came in at Rs 27.14 trillion as of March 17, an increase of 4.86 per cent over previous fiscal. Of this, CT contributed Rs 13.47 trillion, NCTs Rs 13.11 trillion and securities transaction tax (STT), Rs 55,717 crore, and other taxes accounted for Rs 364.93 crore. However, refunds saw a slippage this fiscal, dropping 5.86 per cent to Rs 4.34 trillion.
"Year end collection nos. show a growth of about 7 per cent driven primarily by corporate tax. Refunds continue to show contraction over the previous year primarily driven by automated scrutiny designed to reduce fraudulent claims," said Rohinton Sidhwa, partner, Deloitte India. "Corporate advance taxes show a positive growth signaling higher earnings on the back of economic growth. Non-corporate taxes are still reeling from the rate cut provided to individual tax payers last year," he added.
[The Business Standard]
