How is the CBDT Boosting the Fight Against Tax Evasion?
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Synopsis
The CBDT is amplifying its efforts against tax evasion by implementing a strategic plan to capture unreported businesses. The goal is to enhance revenue collection and ensure compliance. With significant potential for uncovering hidden income, this initiative aims for a more transparent economic landscape.
Key Takeaways
- CBDT's initiative targets unreported businesses.
- Goal to uncover Rs 2.4 lakh crore in hidden income.
- 60% of targets to come from searches and raids.
- Data analysis plays a crucial role in compliance.
- Direct tax collections show a positive trend.
New Delhi, April 28 (NationPress) The Central Board of Direct Taxes (CBDT) has instructed the Income Tax Department's field formations to intensify their efforts against black money and tax evasion through a detailed, time-sensitive strategy aimed at incorporating unreported and under-reported businesses into the tax framework.
The CBDT estimates that there is a possibility of uncovering hidden income totaling an astonishing Rs 2.4 lakh crore in this financial year, as per a media report.
Each jurisdiction of the Income Tax Department is mandated to conduct at least one significant search and seizure operation by July 31, followed by a minimum of two additional operations from August to March 2026, according to the NDTV Profit report.
The board has specified that 60 percent of the overall target should be met through aggressive actions such as searches and raids, while 40 percent should be derived from non-intrusive methods involving data analytics and financial intelligence.
In line with this strategy, the CBDT has instructed the Investigation Wing of the Income Tax Department to compile targeted, data-driven reports on sectors susceptible to tax evasion and lacking sufficient disclosure. These sectors may encompass manufacturing, services, mining, liquor trade, international trade, hawala, healthcare, scrap dealing, and other unregulated areas, as noted in the report.
The CBDT has highlighted the absence of visibility into informal transactions and emphasized the urgent requirement to analyze sectors where unreported or underreported activities are prevalent, in order to formulate strategies for formalization and improved compliance.
This renewed initiative is part of a broad plan aimed at bringing elusive businesses, which evade the tax authorities due to limited data availability, into the tax system and enhancing the country’s revenue.
In related news, India’s direct tax collections for the fiscal year 2024-25 have surpassed their targets, according to the latest figures from the Finance Ministry. The provisional net direct tax collections reached Rs 11,82,875 crore, reflecting a 17 percent increase compared to the previous fiscal year. The tax buoyancy factor, indicating the growth rate of direct taxes in relation to GDP growth, was recorded at 1.57, up from 1.54 in 2023-24, highlighting the robust fiscal health of the nation.
Point of View
The CBDT is focused on enhancing compliance and transparency, which is essential for sustainable economic growth. This initiative reflects a commitment to address the challenges posed by unreported income and strengthen the country’s tax system.
NationPress
20/09/2025
Frequently Asked Questions
What is the CBDT's new strategy against tax evasion?
The CBDT's new strategy involves a time-bound approach to target unreported and under-reported businesses, emphasizing both intrusive and non-intrusive methods to enhance tax compliance.
How much undisclosed income does the CBDT aim to uncover?
The CBDT aims to uncover a staggering Rs 2.4 lakh crore in undisclosed income during the current financial year.
What percentage of the target is to be achieved through raids?
The CBDT has mandated that 60 percent of the target be achieved through intrusive measures like searches and raids.
How will the CBDT identify sectors prone to tax evasion?
The CBDT will prepare focused, data-backed reports on sectors with insufficient disclosure to identify areas susceptible to tax evasion.
What are the projected direct tax collections for 2024-25?
The provisional net direct tax collections for the fiscal year 2024-25 have reached Rs 11,82,875 crore, marking a 17 percent increase from the previous year.
