CBDT Ramps Up Crackdown On Black Money, Sets New Targets For Income Tax Department To Boost Collections

In a major move to combat black money and tax evasion, the Central Board of Direct Taxes (CBDT) has reportedly instructed the Income Tax Department's field formations to implement an aggressive, time-bound strategy aimed at expanding the tax net.

According to a media report, the CBDT anticipates uncovering undisclosed income worth an estimated Rs 2.4 lakh crore during the current financial year, stated IANS.

Under the new directive, every jurisdiction within the Income Tax Department must carry out at least one major search and seizure operation by July 31. Additionally, between August and March 2026, each jurisdiction is expected to conduct two more significant operations, reported NDTV Profit.

The CBDT emphasised that 60 per cent of the overall targets should be achieved through intrusive actions such as searches and raids. The remaining 40 per cent should come from non-intrusive methods like data analysis and financial intelligence gathering.

Targeting Sectors with High Risk of Tax Evasion

As part of its intensified efforts, the Investigation Wing of the Income Tax Department has been tasked with preparing targeted, data-driven reports focused on sectors where tax evasion risks are particularly high. These sectors include manufacturing, services, mining, liquor trade, international trade, hawala operations, healthcare, scrap dealing, and various ancillary or loosely regulated industries, according to the report.

Highlighting the lack of transparency in informal economic activities, the CBDT reportedly stated that there is an urgent need to thoroughly study sectors with significant volumes of unreported or under-reported transactions. The objective is to design sector-specific strategies that promote formalisation and boost compliance rates.

By addressing these blind spots, the government aims to bring hidden economic activities into the formal tax system and thereby strengthen revenue collection.

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Direct Tax Collections Reflect Strong Fiscal Momentum

The latest figures released by the Finance Ministry offer a positive backdrop to the CBDT’s intensified efforts. India's provisional net direct tax collections for the fiscal year 2024–25  surpassed expectations, reaching Rs 11,82,875 crore. This marked a 17 per cent increase compared to the previous year.

Furthermore, the tax buoyancy factor, a critical indicator measuring the growth of direct tax revenue relative to GDP growth, stood at 1.57 — an improvement from the 1.54 recorded during 2023–24. This uptick signalled a robust fiscal environment and underlined the effectiveness of existing compliance measures.

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