Tax Collection on Target: CBDT Optimistic for FY26

CBDT Chairman Ravi Agrawal is optimistic about achieving India’s FY26 income tax goal of Rs 25.20 lakh crore. Delays in high-value refunds are under review, while low-value refunds are being processed. A growth of 6.99% in direct tax collection is reported, with the new tax rule set for April 2026.

In a recent announcement, Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal expressed confidence in meeting the financial year 2026 target for income tax collections, estimated at Rs 25.20 lakh crore.

Addressing concerns on delayed refunds, Agrawal explained that the department is scrutinizing some 'high-value' or 'red-flagged' claims. Nevertheless, low-value refunds are being progressively released. Agrawal assured that the remaining refunds should be processed by December.

The current fiscal exhibits a 6.99% growth in direct tax collections thanks to increased corporate tax revenues and fewer refunds. With ongoing taxpayer compliance and two advance tax instalments pending, Agrawal is hopeful that tax targets will be achieved, while new compliance rules are expected to simplify processes.

(With inputs from agencies.)