Advance tax collection in the first instalment of FY27 grew 15 per cent to ₹1.79 lakh crore, data from the Income Tax Department, released on Thursday showed. It is much higher than the 4 per cent growth of the first instalment in FY26, but lower than the 27 per cent in FY25.

tax collection

Meanwhile, net income tax collection grew 14.64 per cent between April 1 and June 17. According to data, advance taxes by corporates grew 16 per cent to ₹1.41 lakh crore, while collections from non-corporate taxpayers (includes taxes paid by individuals, Hindu undivided families, firms, association of persons, body of individuals, local authorities and artificial juridical person) increased 12.7 per cent to ₹37,620 crore.

Advance tax needs to be paid by an assessee if her/ his total estimated tax liability for the financial year exceeds ₹10,000 after adjusting for tax deducted at source (TDS) and tax collected at source (TCS). It is applied to all taxpayers earning income in India, including salaried individuals, freelancers, consultants, professionals (like doctors and lawyers) and business owners. It needs to be paid in four instalments (due dates: June 15, September 15, December 15 and March 15). However, individuals aged 60 years or older, are exempt from paying advance tax only if they do not have any income from a business or profession.

Meanwhile, overall net income tax collection grew 14.64 per cent to over ₹5.21 lakh crore between April 1 and June 17, government data showed on Thursday. This includes net corporate tax collection, which rose 22 per cent to ₹2.08 lakh crore, and the net non-corporate tax mop-up, which grew 8 per cent to about ₹2.94 lakh crore so far this fiscal year.

Refunds worth ₹89,026 crore were issued till May 17, registering an increase of 1.19 per cent over the year-ago period. On a gross basis, direct tax collection increased 12.46 per cent to over ₹6.10 lakh crore. This includes corporate tax of over ₹2.76 lakh crore and NCT of about ₹3.15 lakh crore.

According to Rohinton Sidhwa, Partner at Deloitte India, overall it appears that tax collections have shrugged off the de-growth caused by the previous year’s rate cut and once again resumed the growth path. “The data also shows strong advance tax growth from companies, indicating the corporate sector is doing well. While these are early indicators of the trends, sustaining it would help keep the Government on its track of maintaining the fiscal deficit target,” he said.

The government has budgeted to collect ₹26.97 lakh crore from direct taxes in the current fiscal year, a 15 per cent growth over the ₹23.40 lakh crore collected in FY26.

Published on June 18, 2026