CBDT Tightens Scrutiny On Top Advance Tax Payers, Targets ₹25.2 Lakh Crore In Direct Tax Collection

As part of its enhanced tax collection strategy, the CBDT has emphasized the reassessment of advance tax liabilities by top taxpayers—both individuals and companies. The Income Tax Department has also been instructed to identify incorrect or fraudulent claims that result in loss of revenue.

Dharmesh Thakkar Updated: Monday, May 05, 2025, 09:10 PM IST
CBDT Tightens Scrutiny On Top Advance Tax Payers, Targets ₹25.2 Lakh Crore In Direct Tax Collection | File Photo

CBDT Tightens Scrutiny On Top Advance Tax Payers, Targets ₹25.2 Lakh Crore In Direct Tax Collection | File Photo

The Central Board of Direct Taxes (CBDT) has directed income-tax officials to closely monitor top advance tax payers and identify bogus claims of exemptions and deductions.

As part of its enhanced tax collection strategy, the CBDT has emphasized the reassessment of advance tax liabilities by top taxpayers—both individuals and companies. The Income Tax Department has also been instructed to identify incorrect or fraudulent claims that result in loss of revenue.

Advance tax refers to the tax paid in instalments during a financial year to ease the government's cash flow and prevent taxpayers from facing a lump-sum burden at year-end.

The policy-making body for direct taxes has issued a Central Action Plan (CAP) for 2025–26, aiming to plug revenue leaks and improve collections. The CAP suggests profiling districts or regions based on net positive or negative revenues and taking corrective measures where tax collections have declined.

"A special emphasis is being placed on collecting arrears and current dues, with strict action against non-compliant taxpayers," confirmed a senior tax official. The official added that taxpayers are being encouraged to opt for the new tax regime, which allows no deductions or exemptions, to curb misuse.

For FY 2025–26, tax officials have been assigned a target of ₹25.20 lakh crore in direct tax collections. According to senior officials, this includes ₹10.82 lakh crore from corporate tax, ₹13.60 lakh crore from non-corporate taxes (including personal income tax), and ₹78,000 crore from the securities transaction tax (STT).

Published on: Monday, May 05, 2025, 09:10 PM IST

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