CBDT will keep a careful eye on high-ranking taxpayers and combat fraudulent deductions

New Delhi: As part of its plan to increase direct tax collections this fiscal year, the CBDT has instructed income-tax officials to "closely" monitor high status taxpayers and spot fraudulent claims of exemptions and deductions. According to official sources who spoke to PTI, the department's policy-making body, the Central Board of Direct Taxes, recently released the central action plan (CAP) for 2025–2026. This plan serves as a roadmap for the department's "key performance areas" in relation to revenue collection efforts.

According to the February budget projections, the Union government has set a goal of ₹25.20 lakh crore for the I-T department under the direct taxes head for the current fiscal year. The total includes ₹78,000 crore from securities transaction tax (STT), ₹10,82,000 crore under corporation tax, and ₹13,60,000 crore under non-corporate taxes, which include personal income tax and other taxes.

Due to the highest-ever amount of refunds, net direct tax collection for the 2024–25 fiscal year increased 13.57 percent to over ₹22.26 lakh crore, just missing the target, according to official figures. According to the July 2024 budget receipt, the government had set a goal of ₹22,07,000 crore for the administration of direct taxes. This goal was changed to ₹22,37,000 crore in the February budget presentation.