According to a recent report, the Central Board of Direct Taxes (CBDT) is set to intensify efforts to recover confirmed tax arrears amounting to ₹2.57 lakh crore in the current financial year.
As part of this initiative, special teams will be formed to monitor the 10,000 largest tax arrears cases across the country for the financial year 2026-27. Tax department officials shared this information with NDTV Profit.
Officials indicated that technologies such as artificial intelligence (AI), data analytics, and digital forensics will be employed for tax recovery and compliance monitoring.
CBDT officials noted that tax recovery teams may also utilize the CERSAI mortgage and asset database to identify properties linked to defaulters and those that have been mortgaged.
The tax department will also keep a close watch on large advance tax payers and identify any misuse of tax exemptions and deductions.
In the financial year 2025-26, the CBDT resolved 2.24 lakh appeals, which included disputed tax demands totaling ₹8.27 lakh crore.
According to departmental officials, the number of pending appeals decreased from 5.40 lakh in the financial year 2025-26 to 4.95 lakh. Additionally, officials have been instructed to focus on recovery from non-compliant taxpayers.
The budget for 2026 sets a direct tax collection target of ₹26.97 lakh crore for the financial year 2026-27.
Furthermore, direct tax collections in India saw a slight annual increase in the financial year 2025-26, but it fell short of the government’s revised estimates due to changing economic conditions.
Preliminary figures indicate a 5.1% increase in direct tax collections, reaching ₹23.4 lakh crore. However, this was approximately ₹81,000 crore less than the revised estimate of ₹24.21 lakh crore, suggesting a lower-than-expected growth in tax revenue.
Recently, the Chief Commissioner of Income Tax (IT and TP), Nirupama Kotharu, commented on the newly implemented Income Tax Act 2025, stating that it has made India’s tax system simpler, more comprehensible, and more taxpayer-friendly.
She mentioned in an interview that these reforms aim to assist the general public in filing tax returns without confusion and reduce reliance on professionals for standard tax processes.