The Central Board of Direct Taxes (CBDT) has identified a set of measures to collect ₹26.97 lakh crore in direct taxes in the current financial year, which include better management of recovery of dues, detecting wrongful claims of tax exemptions and outreach programmes to get tax returns updated where there is short payment of taxes, an official said.
The official said tax collection so far has been encouraging, with net direct tax receipts reaching ₹5.21 lakh crore by June 17, nearly 15 per cent increase compared to the same period last year. This strong start has raised hopes that the annual target will be met comfortably.
An email sent to the Finance Ministry on Monday remained unanswered till the publishing of this news.
According to the official, who spoke on condition of not being named, the Board’s Central Action Plan for 2026-27 lays down clear steps to achieve the goal.
These include better recovery of old tax dues by classifying them as easy or difficult to collect, and using information from banks, company records, and financial intelligence units to trace taxpayers and recover money through tax recovery officers. Special teams will handle big pending cases, while officers have been given specific performance targets such as carrying out property attachments and auctions in every range and commissionerate.
The plan also focuses on completing all actions on appeal orders by March 2027, faster disposal of old appeals, and analysis of sectors showing low tax payments. Other measures include risk-based selection of cases for detailed checking using data analytics, monitoring of top advance tax payers, identification of wrong exemption claims, outreach programmes to encourage updated tax returns and new filers, and profiling of districts to find compliance gaps.
“Strong emphasis has been placed on tax deducted at source(TDS) compliance through better record reconciliation and timely action in default cases. Officers will be monitored through monthly, quarterly and half-yearly reviews, with senior officials responsible for taking corrective steps wherever needed. The plan also stresses greater use of technology systems and training on the new Income-tax Act,” he added.
Akhilesh Ranjan, former Member of the CBDT, said, “Though it is too early to make a definitive prediction, it currently appears that the government is likely to achieve the direct tax collection target for the current fiscal year. The target is not overly ambitious — it is only about 11 per cent higher than the previous year. Additionally, with corporates actively undertaking cost-cutting measures, they should be able to meet their profitability goals and contribute effectively to the target.”
Chief Economist at Bank of Baroda, struck a more cautious note. “Income tax revenue is likely to remain relatively stable this year, supported by steady personal tax collections. However, corporate earnings could come under pressure, particularly from oil marketing companies, where profitability may turn negligible or negative due to the ongoing West Asia crisis and elevated crude oil costs. For a clearer picture on the broader corporate sector, we will need to closely monitor the first quarter earnings,” he said.
