The CBDT collected ₹20,000 crore in pending dues during the first quarter of the current financial year, a twofold increase from the same period last year. These collections were in response to demand notices issued by the income-tax department until March 31.

Key Highlights

• CBDT recovered ₹20,000 cr of income-tax dues in Q1, nearly doubling last year’s collections.
• Collections include ₹17,244 cr corporate tax, ₹2,714 cr personal tax, signaling aggressive enforcement against evasion. 

The department aims to recover ₹1.96 lakh crore this fiscal year and will intensify collection efforts in the coming months, according to officials. The tax authority is currently investigating cases in which taxpayers are suspected of underreporting their income or committing deliberate tax evasion.

Officials informed that the recovered amount included ₹17,244 crore in corporate tax, ₹2,714 crore in personal income tax, and ₹180 crore for non-payment of tax deducted at source.

"In the last few years, recovery has been good, and this year our target is to touch at least Rs 2 lakh crore, which we will easily achieve," a senior official was quoted as saying.

CBDT's Income Tax Recovery

The Central Board of Direct Taxes has directed regional offices to increase collections by setting specific recovery targets for each zone, with a particular emphasis on cases where initial appeals have ruled in favor of the tax department.

Tax assessment officials have been directed to implement comprehensive measures for collecting pending dues that were approved by the Commissioner of Income-tax (Appeals) during the primary appeal phase.

Also Read: Finance Minister Urges Tax Department for Prompt Refund Processing

In 2024-25, the revenue department received ₹1.96 lakh crore in confirmed demands from resolved appeals, according to an official. The CBDT collected ₹92,400 crore in outstanding payments, including ₹67,711 crore in corporate tax, ₹23,536 crore in personal income tax, and ₹1,100 crore for unpaid tax deducted at source.

Tax arrears have emerged as a major issue for the department. The income-tax department's pending tax demands increased to ₹42 lakh crore by October 1, 2024, up from ₹10 lakh crore in 2019-20, according to the parliamentary standing committee on finance report. The department aims to recover ₹27 lakh crore from the outstanding balance.