New Delhi, Aug. 11 -- India's net direct tax collections rose 23.09% year-on-year to Rs.8.11 trillion between 1 April and 10 August, from Rs.6.59 trillion in the corresponding period a year earlier, pointing to strong tax revenue mobilization early in FY27 and outpacing the growth assumed for the broader economy in the Union budget.

According to provisional tax collection data released by the government on Tuesday, gross direct tax collections increased 19.75% to Rs.9.55 trillion, from Rs.7.97 trillion in the year-earlier period.

The data are significant for the government's finances because direct taxes are a major source of revenue for funding expenditure and keeping the fiscal deficit on track. The FY27 budget has pegged the Centre's...