Net direct tax collection grew 19.54 per cent to over ₹5.74 lakh crore till July 11 this fiscal on higher advance tax payment by corporate houses.

The first instalment of advance tax, which was due on June 15, rose 27.34 per cent to ₹1.48 lakh crore. This includes Corporation Income Tax (CIT) of ₹1.14 lakh crore and Personal Income Tax (PIT) of ₹34,470 crore.

The net direct tax collection of ₹5,74,357 crore (as of July 11) includes a CIT of ₹2,10,274 crore and PIT of ₹3,46,036 crore, according to data released by the Central Board of Direct Taxes (CBDT) on Saturday.

Rohinton Sidhwa, partner, Deloitte India said: “Corporate profits continue to surge, and these are reflected in the first quarter advance tax collections. A booming stock market has also contributed to higher STT collections. Strong collections being the backdrop of the budget indicate the possibility of the government reigning in the fiscal deficit.”

Securities Transaction Tax (STT) contributed ₹16,634 crore to the direct tax collection, it said.

During the same period last year, net direct tax collection was ₹4,80,458 crore.

Refunds amounting to ₹70,902 crore have also been issued in FY25 till July 11, which is 64.4 per cent higher than refunds issued during the same period in the previous year.

For April-July 11, gross collection of direct taxes (before adjusting for refunds) stood at ₹6.45 lakh crore compared with ₹5.23 lakh crore in the year-ago period, showing a growth of 23.24 per cent.

For full fiscal year, the interim budget has pegged direct tax collection at ₹21.99 lakh crore.

The buoyancy in tax collections will help the government control the fiscal deficit as it gears up to present the full budget for 2024-25.

The hefty ₹2.11 lakh crore dividend from the RBI and the robust direct tax and GST collections will give the finance minister headroom for pushing ahead with policies aimed at accelerating growth and implementing social welfare schemes aimed at uplifting the poor.