CBDT to closely monitor top taxpayers, crack down on bogus deductions
The CBDT has directed income-tax officials to “closely” monitor top advance tax payers and identify bogus claims of exemptions and deductions as part of the strategy to improve direct tax collections during the current financial year.
Official sources told PTI that the Central Board of Direct Taxes, the policy-making body for the department, had recently issued the central action plan (CAP) for 2025-26 that acts as the guiding light to steer ‘key performance areas’ for the department vis-a-vis revenue collection work.
The Union government has set a target of ₹25.20 lakh crore for the I-T department under the direct taxes head for the current fiscal, as per the Budget estimates presented in February.
The sum consists of ₹10,82,000 crore under the corporate tax head, ₹13,60,000 crore under non-corporate taxes that includes personal income tax and
others, and ₹78,000 crore from securities transaction tax (STT).
The net direct tax collection for the 2024-25 FY narrowly missed the target, growing 13.57 per cent to over ₹22.26 lakh crore, owing to issuance of the highest-ever amount of refunds issued, official data revealed.
The government had set a target of ₹22,07,000 crore for the direct tax administration as per the budget receipt of July 2024 and revised it to ₹22,37,000 crore during the budget presented in February.
The CAP has suggested the I-T department undertake a “sectoral analysis” for better tax collection by addressing “negative” trends of tax payments, a source said.