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HomeTaxationIncome TaxCBDT Cracks Down on Pending Tax Dues with Massive Rs 2.57 Lakh...

CBDT Cracks Down on Pending Tax Dues with Massive Rs 2.57 Lakh Crore Recovery Plan

CBDT Cracks Down on Pending Tax Dues with Massive Rs 2.57 Lakh Crore Recovery Plan

According to the reports by CNBCTV18, the Central Board of Direct Taxes (CBDT) is anticipated to intensify tax recovery during the Financial Year 2025-26 (Assessment Year 2026-27) with a target of recovering a confirmed tax demand amounting to Rs 2.57 lakh crore. The move is aimed at improving tax compliance and reducing the large backlog of unpaid dues.

There are still cases that exist where tax demands have already been completely sustained by the Commissioner of Income Tax (Appeals), giving tax authorities strong leverage and the department a stronger legal position to recover pending amounts.

The CBDT has directed the Assessing Officers (AOs) to make all possible efforts to recover both present and old pending tax demands. However, recovery action will not apply in cases where higher appellate authorities have granted a stay on collections.

To strengthen the recovery process, the CBDT has directed officials to pay special attention to arrear demands as well as fresh tax liabilities arising during the current financial year. The department also plans to form special teams to monitor and handle the top 10,000 arrear cases across the country.

Moreover, the Principal Chief Commissioners of Income Tax (CCITs) have been asked to actively help Assessing Officers and Tax Recovery Officers (TROs) in speeding up these recovery proceedings.