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CBDT Launches Major Drive to Recover Rs 2.57 Lakh Crore Tax Arrears

The Central Board of Direct Taxes is launching a major recovery drive to collect Rs 2.57 lakh crore in confirmed tax arrears during the current fiscal year. Special teams will focus on the top 10,000 high-value cases nationwide, using AI, data analytics, and digital forensics to enhance enforcement. The department will also utilize the CERSAI mortgage database to trace assets linked to defaulters. Meanwhile, the new Income Tax Act 2025 aims to simplify tax compliance for ordinary citizens, as stated by Chief Commissioner Nirupama Kotru.

Key Points: CBDT Targets Rs 2.57 Lakh Crore Tax Arrears Recovery

  • CBDT targets Rs 2.57 lakh crore arrears recovery in FY27
  • Special teams to track top 10,000 high-value cases
  • AI, data analytics, and CERSAI database to be used
  • FY27 direct tax collection target set at Rs 26.97 lakh crore
2 min read

CBDT plans recovery drive for Rs 2.57 lakh crore tax arrears: Report

CBDT intensifies recovery of Rs 2.57 lakh crore tax arrears in FY27 using AI, data analytics, and special teams targeting top 10,000 defaulters.

"The reforms are aimed at helping ordinary citizens file returns without confusion and reducing dependence on tax professionals for basic compliance. - Nirupama Kotru"

New Delhi, May 9

The Central Board of Direct Taxes is stepping up efforts to recover Rs 2.57 lakh crore in confirmed tax demands in the current fiscal year, a report has said.

Under the enforcement drive, special teams will track the top 10,000 high‑value arrear cases nationwide in FY27, the tax department officials told NDTV Profit.

Tax recovery and compliance monitoring will see a technology-driven push from artificial intelligence, data analytics and digital forensics, they said.

The CBDT officials said recovery teams may also use the CERSAI mortgage and asset database to trace properties and secured assets linked to defaulters.

The tax department will monitor top advance‑tax payers and identify misuse of exemptions and deductions, it added.

In FY26, the board disposed of 2.24 lakh appeals involving disputed demand of Rs 8.27 lakh crore.

Pending appeals have declined from 5.40 lakh to 4.95 lakh during FY26, the department officials said, adding that directions have been provided to officers to focus on recovery from non-compliant taxpayers.

FY27 direct tax collection target stood at 26.97 lakh crore as per the Budget 2026.

Moreover, India's direct tax collections inched up moderately in FY26 on an annual basis but missed the government's revised estimates, due to evolving macro-economic conditions.

Net direct tax collections rose 5.1 per cent year-on-year to Rs 23.4 lakh crore in FY26 as per provisional data, short of the Revised Estimate (RE) of Rs 24.21 lakh crore by approximately Rs 81,000 crore, highlighting weaker-than-anticipated buoyancy in tax revenues.

The government's newly implemented Income Tax Act 2025 has made India's tax system simpler, easier to understand and more taxpayer-friendly, Chief Commissioner of Income Tax (IT & TP) Nirupama Kotru said on Friday.

Speaking to IANS on the sidelines of an awareness programme here, she said the reforms are aimed at helping ordinary citizens file returns without confusion and reducing dependence on tax professionals for basic compliance.

- IANS

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Reader Comments

A
Arjun K
Rs 2.57 lakh crore is a staggering amount! I hope this drive doesn't become an excuse for arbitrary actions against small businesses. The new Income Tax Act 2025 sounds promising, but let's see how it works on ground. Recovery from top defaulters should be a priority, but proper checks and balances are needed. 😊

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Priya S
Finally, some action on tax arrears! The use of CERSAI database is smart, but I'm a bit concerned about privacy. As a salaried employee, I pay taxes religiously, and it's frustrating to see big defaulters getting away. Hopefully this time recovery actually happens and helps meet the FY27 target. 🙏

V
Vikram M
Technology-driven recovery is good, but why not focus on preventing tax evasion in the first place? The gap between direct tax collections and estimates shows we need better economic planning, not just aggressive recovery. Also, pending appeals need quicker resolution. Let's hope the new system actually works! 🤞

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Sneha F
As a small business owner, I'm cautious. The AI and data analytics part sounds efficient, but I hope it doesn't lead to unnecessary scrutiny of small taxpayers. The Income Tax Act 2025 should genuinely simplify things for ordinary citizens, not just create new compliance burdens. Good intent, careful implementation needed.

K
Kavya N
Rs 81,000 crore shortfall in FY26 is significant! The recovery drive is necessary, but I worry about the human impact – what about defaulters who genuinely couldn't pay due to business losses? A balanced approach with empathy for genuine cases, while targeting deliberate

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