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Tax Compliance Drive: CBDT Targets Top 10,000 Arrear Cases to Recover Rs 2.57 Lakh Crore In FY27 | Exclusive

The tax department will monitor top advance-tax payers and identify misuse of exemptions and deductions.

Tax Compliance Drive: CBDT Targets Top 10,000 Arrear Cases to Recover Rs 2.57 Lakh Crore In FY27 | Exclusive
CBDT will use AI, data analytics and digital forensics for tax recovery and monitoring.
Photo source: Freepik
  • The Central Board of Direct Taxes aims to recover Rs 2.57 lakh crore in confirmed tax demand in FY27
  • Special teams will track 10,000 high-value arrear cases nationwide in the ongoing fiscal year
  • CBDT plans to use AI, data analytics, and digital forensics to enhance tax recovery efforts
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The Central Board of Direct Taxes is ramping up efforts to recover Rs 2.57 lakh crore in the form of confirmed tax demand in the ongoing fiscal, NDTV Profit learnt exclusively from CBDT officials. 

Under the tax department's new plan, special teams are going to track 'top 10,000' high-value arrear cases across India in fiscal 2027. 

The CBDT is also initiating a technology boost under these efforts and has said that it will use AI, data analytics and digital forensics for tax recovery and compliance monitoring.

Additionally, it said that recovery teams may use CERSAI mortgage and asset database to trace properties and secured assets linked to tax defaulters.

ALSO READ: FY26 Direct Tax Collections Miss Revised Target, Show Modest Growth

The tax department will monitor top advance-tax payers and identify misuse of exemptions and deductions. In FY26, the board disposed 2.24 lakh appeals involving disputed demand of Rs 8.27 lakh crore. 

CBDT highlighted that pending appeals have reduced from 5.40 lakh to 4.95 lakh during FY26. It added that it has directed officers to place “special emphasis” on recovery from non-compliant taxpayers.

Budget 2026 placed the FY27 direct tax collection target at 26.97 lakh crore. India's direct tax collections for fiscal 2026 recorded a moderate year-on-year increase but missed the government's revised estimates, highlighting a mixed fiscal performance amid evolving economic conditions.

According to provisional data, net direct tax collections grew 5.1% year-on-year to Rs 23.4 lakh crore in FY26. However, this fell 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 revised estimate itself had been scaled down from the Budget target of Rs 25.20 lakh crore, underscoring that collections not only missed the original projection but also underperformed the downgraded target.

ALSO READ: Income Tax 2026 New Rules: Full List Of New Forms, Who Can Use Them, Key Changes

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