According to the NDTV Profit report, in a first-of-its-kind initiative, the Central Board of Direct Taxes (CBDT) has rolled out an aggressive action plan for the fiscal year 2025–26. Setting an ambitious target of unearthing ₹2.4 lakh crore in undisclosed income, the move underscores the government’s renewed commitment to tackling black money and systemic tax evasion. According to reports, this internal directive aims not only at curbing malpractices but also at deepening the formalisation of India’s economic ecosystem.
The CBDT’s internal strategy outlines a structured approach to achieving its ambitious goal. Each jurisdiction has been assigned specific undisclosed income recovery targets and operational milestones. Notably, 60% of the target must be achieved through intrusive methods such as search and seizure operations, while the remaining 40% is expected to come through non-intrusive means, including data analysis and financial intelligence.
The timeline is strict: each jurisdiction must carry out at least one major search operation by 31 July 2025, and two additional operations between August and March 2026.
Recognising the opacity prevalent in certain sectors, the CBDT has asked its Investigation Wing to identify high-risk sectors by May-end. The sectoral analysis will be finalised at the Directorate General of Income Tax (DGIT) level by December 2025, with final reports to be submitted by February 2026.
The sectors under consideration span manufacturing, services, agriculture, mining, local liquor trade, international trade, hawala transactions, healthcare, accommodation, scrap dealing, and other ancillary or unregulated domains. Each DGIT is expected to select sectors based on the potential for large-scale evasion and structural loopholes.
The CBDT has adopted a granular approach by setting jurisdiction-wise targets:
This distribution reflects the economic heft and historical trends of informal sector activity in these cities. It also signals a geographically diversified enforcement mechanism to ensure comprehensive coverage.
A central objective behind the crackdown is to bring sectors with high evasion risks into the formal tax net. The CBDT has highlighted the pressing need to study domains where underreporting or non-reporting is prevalent. By focusing on formalisation, the Board seeks to bolster tax compliance and improve transparency across critical sectors of the economy.
The strategy also involves designing specific compliance frameworks suited to the operational realities of each sector, rather than adopting a one-size-fits-all approach.
Read More: The Ultimate Guide to Income Tax
The CBDT’s FY26 action plan marks a significant shift in India’s approach towards unearthing black money and integrating informal economic activities into the mainstream. By combining intrusive enforcement actions with sophisticated data-backed intelligence, the Board is setting a precedent for rigorous tax administration. The coming months will be critical in determining how successfully these targets are achieved and what lasting impact they will have on India’s fiscal landscape.
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Published on: Apr 29, 2025, 3:42 PM IST
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