CBDT Chief Confident Of Meeting FY26 Tax Target; Signals Big Push On Dispute Resolution In Upcoming Budget

CBDT Chairman Ravi Agarwal played down concerns over a slowdown in direct tax collections, saying the government is on track to meet the FY26 Budget target. Speaking to NDTV Profit, Agarwal said multiple inflows due over the next few weeks, along with structural changes, will lift the numbers.

Agarwal said audited income-tax returns—now required to be filed by Dec. 10 are already helping collections, while the next two advance tax installments should further shore up revenues. “Rationalised TDS rates and lower refunds are also visible in the recent figures,” he said, adding that the Centre is hopeful of meeting the budgeted target.”

CBDT chair also hinted at more moves to simplify the tax regime. He said the government is looking at additional rationalisation of TDS provisions on top of the changes made earlier. “We are focused on simplifying rules and cutting down forms so that compliance becomes smoother and gaps can be plugged,” he said, noting that the department is in active consultation with stakeholders.

Importantly, the CBDT chair also signalled that new dispute-resolution measures are being examined for the upcoming Budget. “We are conscious about putting in place a system to minimise disputes,” he said. He pointed to last year’s updated return mechanism, which has already reduced litigation and may be strengthened further.

The statement assume significance as the government started pre-budget consultations across the sectors as part of budget-making exercise. The Union Budget typically gets presented on the first working day of February. However, the date has not been officially declared.

Finance Minister Nirmala Sitharaman is scheduled to meet various stakeholders from different sectors starting from Nov 18.