The Central Board of Direct Taxes has rolled out an aggressive action plan for the fiscal 2025-26, aimed at tightening the net around black money and tax evasion, with a first-of-its-kind move to set an ambitious target of unearthing Rs 2.4 lakh crore in undisclosed income, according to people familiar with the matter.
The move aims to understand systemic loopholes and bring the informal economic ecosystem into the mainstream tax net.
As part of the internal strategy, the CBDT has directed its Investigation Wing to prepare focused, data-backed reports on select high-risk sectors in a stipulated time period.
“CBDT asked to identify high-risk sectors by the end of May. The sector-specific analysis will be finalized at the DGIT level by December, with the final report to be submitted to the Board by February 2026,” a source privy to the internal plan told NDTV Profit.
Each jurisdiction has been asked to conduct at least one major search and seizure operation by July 31, and a minimum of two more between August and March 2026.
The board has mandated that 60% of the total target be achieved through intrusive methods like searches and raids, while 40% must come from non-intrusive probes such as data analysis and financial intelligence.
Jurisdiction-wise targets have been fixed, with Mumbai expected to deliver Rs 60,000 crore, followed by Delhi at Rs 45,000 crore. Bengaluru and Ahmedabad have each been assigned a Rs 20,000 crore goal.
Citing a lack of visibility into informal transactions, the CBDT said there is a pressing need to study sectors where the volume of unreported or underreported activity is high, and to design strategies for formalization and better compliance.
Each Directorate General of Income Tax (DGIT) has been asked to identify one or more such sectors from within their jurisdiction—preferably those with significant evasion footprints or structural gaps.
Added that it could be any sectors such as manufacturing, services, agriculture, mining, local liquor trade, international trade, hawala, healthcare, accommodation, scrap dealing, and other ancillary or unregulated domains.
The move signals a renewed focus on integrating the informal economy into the formal tax framework and tackling sectors with high evasion risks, including manufacturing, services, agriculture, healthcare, and trading.
Formalising Informal Economy
Citing a lack of visibility into informal transactions, the CBDT said there is a pressing need to study sectors where the volume of unreported or underreported activity is high, and to design strategies for formalization and better compliance.
The proposed reports are expected to provide: A business and operational profile of the sector; Key entities, including listed companies, M&A activity, bulk deals, and shareholding anomalies; Statistical contribution of the sector to the economy; Financial analysis based on advance tax trends, profit margins, and cost structures; Sector-specific investigation strategies; Identified tax risks and regulatory compliance behavior; Recommendations for policy or structural reforms, along with a forward-looking risk outlook for the sector concerned.
CBDT has also emphasized that any case chosen for intrusive investigation or search/seizure must have potential for a cascading impact in the larger fight against black money.
This push comes as part of a broader plan to shift attention toward sectors that traditionally escape scrutiny due to limited data, with the ultimate goal of integrating them into a less-cash, more formal economy.
