Data Alert
High income tax mop-up lifts Jul tax collections 42%, Apr-Jul 11%
This story was originally published at 21:29 IST on 31 August 2026
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--Govt Apr-Jul non-tax revenue INR 4.230 tln vs INR 4.036 tln year ago
--Govt: Apr-Jul state tax devolution INR 3.724 tln vs INR 4.285 tln yr ago
--Govt Jul gross tax revenue INR 3.171 tln vs INR 2.239 tln year ago
NEW DELHI – The central government's tax collections rose 41.6% in July to INR 3.171 trillion, lifting the total growth in tax collection for Apr-Jul by 11.4%. The robust growth in tax collections was led by a jump in the government's direct tax collections, particularly income tax collections, data released by the Controller General of Accounts Monday showed. The government collected INR 12.180 trillion in the first four months of 2026-27 (Apr-Mar), almost 28% of the full year's target of INR 44.041 trillion.
The government collected INR 1.363 trillion as income tax in July, up 96.1% on year, taking the total collection under this head to INR 4.417 trillion, up 24.3% on year. Income tax collections rose sharply in July as the deadline for filing income tax returns was Jul. 31 this year whereas it was extended beyond July last year. Any residual taxes due have to be paid at the time of filing returns and this bumps up income tax collections in the last month for filing reutrns. Corporate tax collections also rose at a healthy pace, rising 28.2% on year to INR 331.28 billion in July, and up 20.8% in Apr-Jul to INR 2.40 trillion. Securities Transaction Tax collections also rose steadily and were up 48.7% in July at INR 75.95 billion and up 47.9% in Apr-Jul at INR 264.51 billion.
The government aims to collect INR 26.97 trillion as direct taxes in FY27, up 18.1% from FY26. The government aims to collect INR 737 billion from securities transaction tax in FY27.
The government's Central Goods and Services Tax collections, another top contributor to central coffers, grew at a healthy 16% in the first four months of FY27 to INR 3.615 trillion. In July alone, it grew 13.3% to INR 905.61 billion. Integrated GST, however, continues to be a drag on overall collections. The government saw IGST outflows of INR 64.66 billion during Apr-Jul, compared to collections of INR 119.07 billion in the corresponding quarter a year ago.
The other indirect tax components show divergent performance. The government's customs duty collections rose 38.2% in Apr-Jul to INR 836.45 billion, while excise duty collections fell 23.1% to INR 645.31 billion. The rise in customs duty collections is due to the hike in import duty on precious metals such as gold announced in May and the fall in excise duty collections is due to the cut in excise duty on fuel from March.
While the government's gross tax collections were up 11.4% in Apr-Jul, the net tax collections for the period rose at an even higher 27.6% on year. The government's net tax collections were INR 8.45 trillion during the first four months. With this, the government has collected almost 30% of the full year's net tax collection target of INR 28.669 trillion.
The net tax collection was high as the government's devolution to states during the corresponding period was down 13.1% to INR 3.724 trillion. The 16th Finance Commission has recommended sharing 41% of central taxes with states. Typically, the devolution is released to states in 14 equal instalments.
The Budget has projected total tax collections for FY27 at INR 44.041 trillion, up 8% from last year's revised estimate. The government had missed the revised target for FY26 by INR 534 billion.
The details for the central government's tax collections for Apr-Jul and Jul are as follows (in billion INR):
| Apr-Jul 2026 | Apr-Jul 2025 | Year-on-year % change | |
| Corporation Tax | 2,399.55 | 1,985.89 | 20.8 |
| Income Tax | 4,416.51 | 3,553.15 | 24.3 |
| Securities Transaction Tax | 264.51 | 178.82 | 47.9 |
| Other Receipts | (-)0.02 | 0.05 | -- |
| Central GST | 3,615.11 | 3,116.25 | 16.0 |
| Union territory GST | 18.06 | 11.15 | 62.0 |
| Integrated GST | (-)64.66 | 119.07 | -- |
| GST compensation cess | 2.11 | 503.05 | (-)99.6 |
| Customs | 836.45 | 605.3 | 38.2 |
| Excise duty | 645.31 | 839.63 | -23.1 |
| Service Tax | (-)4.08 | (-)1.68 | -- |
| Other taxes | 51.44 | 18.42 | 179.3 |
| Total | 12,180.29 | 10,929.1 | 11.4 |
| Jul-26 | Jun-26 | Jul-25 | Year-on-year % change | |
| Corporation Tax | 331.28 | 1,501.46 | 258.4 | 28.2 |
| Income Tax | 1,362.56 | 1,004.93 | 694.86 | 96.1 |
| Securities Transaction Tax | 75.95 | 73.2 | 48.67 | 56.1 |
| Other Receipts | 0.04 | (-)0.02 | 0.01 | -- |
| Central GST | 905.61 | 806.14 | 799.02 | 13.3 |
| Union territory GST | 6.12 | 5.61 | 3.36 | 82.1 |
| Integrated GST | 3.87 | (-)35.39 | (-)154.05 | -- |
| GST compensation cess | 0.18 | 0.07 | 119.8 | -99.8 |
| Customs | 259.04 | 175.21 | 181.16 | 43.0 |
| Excise duty | 213.82 | 219.51 | 283.58 | -24.6 |
| Service Tax | (-)0.33 | (-)2.05 | -0.16 | -- |
| Other taxes | 12.93 | 14.72 | 4.36 | 196.6 |
| Total | 3,171.07 | 3,763.39 | 2,239.01 | 41.6 |
End
Reported by Priyasmita Dutta
Edited by Pankaj Aher
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