New Delhi, May 9 (IANS): The Central Board of Direct Taxes (CBDT) is intensifying efforts to recover Rs 2.57 lakh crore in confirmed tax demands in the current fiscal year, deploying special teams to track the top 10,000 high-value arrear cases nationwide in FY27, according to tax department officials. The enforcement drive will be powered by a technology-driven push incorporating artificial intelligence, data analytics, and digital forensics to strengthen tax recovery and compliance monitoring. Recovery teams may also tap into the CERSAI mortgage and asset database to trace properties and secured assets linked to defaulters, while the tax department will simultaneously monitor top advance-tax payers and identify misuse of exemptions and deductions. The push comes as India’s direct tax collections in FY26 rose only 5.1 per cent year-on-year to Rs 23.4 lakh crore on a provisional basis, falling short of the Revised Estimate of Rs 24.21 lakh crore by approximately Rs 81,000 crore, reflecting weaker-than-anticipated buoyancy in tax revenues amid evolving macroeconomic conditions.
Despite the shortfall, the CBDT made notable progress on the appeals front in FY26, disposing of 2.24 lakh appeals involving disputed demands worth Rs 8.27 lakh crore, with pending appeals declining from 5.40 lakh to 4.95 lakh during the year. Officers have been directed to focus recovery efforts on non-compliant taxpayers as the board works toward an ambitious direct tax collection target of Rs 26.97 lakh crore for FY27 as set out in Budget 2026. On the reform front, Chief Commissioner of Income Tax Nirupama Kotru highlighted that the newly implemented Income Tax Act 2025 has made India’s tax system simpler, more transparent, and more taxpayer-friendly, with reforms aimed at enabling ordinary citizens to file returns without confusion and reducing dependence on tax professionals for basic compliance tasks.