CBDT Releases Central Action Plan for FY 2025-26 with Focus on Tax Collection and Arrears Reduction

As per the plan, the CBDT has asked field officers to closely monitor any decline in tax collections and promptly investigate the reasons. Officers are also directed to keep a close watch on advance tax contributions from top taxpayers to ensure timely inflows.

A key focus of the CAP is on reducing outstanding tax arrears, which currently stand at Rs 48.17 lakh crore.

The board has issued clear instructions to prioritize the reduction of these arrears. One of the measures includes using a formula-based method to reduce arrears by approximately Rs 8.2 lakh crore through recalculations and reassessments.

In this exercise, CAP sets a target to reduce Rs 2.58 lakh crore from the arrears, followed by the Delhi region has to trim the arrear estimate by Rs 1.86 lakh crore.

Additionally, the CBDT has emphasized resolving high-value arrears related to the top 5,000 taxpayers in the country, whose total dues amount to Rs 3.2 lakh crore.

This segment will be treated as a priority for recovery and resolution.

The CAP also includes a roadmap for the implementation of the new Income Tax Act, outlining steps to ensure a smooth rollout and effective compliance.

In a proactive move, the CBDT has released the CAP in April itself, giving field offices sufficient time for planning and timely execution throughout the financial year.

As per sources, " In FY 2024-25, the disposal of appeals is 155 per cent more than the previous year and is at an all-time high. Further, though the pendency is still laying at 5.38 lakh cases, however, for the first time pendency of appeals as on 1st April, 2025 is lower than the pendency on 1st April, 2024.

Sources further added, "The number of cases disposed is 1.72 lakh Appeals. This is the highest disposal till date in the history of the Department, despite substantial manpower shortages and vacancies at the level of Commissioner (Appeals) (Faceless), and Joint CIT(A).

Along with the operational target, CBDT set the 10 percent target of new tax filers in this financial year

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