The CBDT has directed its attention towards major taxpayers and fake exemption claims to increase direct tax collections for the 2025-26 financial year. The Central Board of Direct Taxes has released a Central Action Plan (CAP) to direct essential revenue-generating strategies for achieving the Union government’s difficult fiscal target of ₹25.20 lakh crore.
The total revenue includes ₹10.82 lakh crore from corporate tax and ₹13.60 lakh crore from personal income tax and other non-corporate taxes and ₹78,000 crore from securities transaction tax (STT). The FY 2024-25 net direct tax collection reached ₹22.26 lakh crore which fell short of the revised ₹22.37 lakh crore target because of record-high refunds totaling ₹4.76 lakh crore.
The CBDT requires tax officials to track advance tax payments closely while identifying false deduction claims that reduce actual revenue collection. The system will use sector-based analysis to detect negative payment patterns which will force non-compliant individuals and companies to review their tax obligations.
The plan requires officials to identify underperforming regions through profiling and focus on districts that fail to meet revenue expectations. Tax officials need to pursue both past-due payments and present demands especially since the Commissioner of Income Tax (Appeals) confirmed ₹1.95 lakh crore in FY 2024-25. The current arrear demand amounts to ₹48.17 lakh crore.
The department will start awareness programs about legitimate tax deductions and exemptions while promoting updated ITR filings to enhance compliance. The new tax regime aims to promote migration while it disallows deductions in exchange for a flat tax rate that prevents misuse.
