To improve direct tax collection, Income Tax Department is likely to profile districts for net positive or negative revenues and for better compliance. It also plans to further tighten crypto net by reporting of new specified financial transaction (SFT).  

These are part of Central Action Plan for current fiscal, details of which were shared by senior officials with businessline. These measures are critical, when direct tax collection in FY26 fell short by ₹81000 crore. Because of this, required growth rate for FY 27 collection of ₹26.97 lakh crore has surged to 15.25 per cent as against budget projection of 11.4 per cent.

One such suggestion is “Profiling of districts or suitable areas for net positive or negative revenues and for better compliance. In case of negative revenue, reasons to be identified and suitable action to be taken,” one of the officials said. This will required action by filed formation with support from Directorate of Tax Research and Analysis. As on date, state wise collection data is available which shows Maharashtra is on top, followed by Karnataka and Delhi.

According to him, another suggestion is about analysing various industrial sectors. Here there would be focus on five things. First to address negative trends of tax payments. Second, to examine the trend in specific sectors for taking suitable actions. Third to find the reasons for negative trends of tax payments or growth of advance tax in such sectors. Fourth, close monitoring of top advance tax taxpayers and encouraging them to reassess their advance tax liabilities to avoid self-assessment tax, and fifth would be identifying claim of incorrect exemptions and deductions.

Another official said that one big focus area under the annual plan would be collection of demand confirmed by Income Tax Commissioner (Appeal). “During FY26, based on total appeals disposed, total demand confirmed was ₹2.57 lakh crore. Now effort would be to collection these demands, except, where stay has been granted by courts etc,” he said. It is also planned to double the number of top PAN wise demands to 10000 to monitor and action. At the same time, focus would also be on prompt issuance of refunds to avoid interest payments and enhancing awareness of rightful claims for deductions and exemptions & educating taxpayers on filing updated returns.

Talking about new initiative, the first official, quoted above, said that effort would to be to further tighten grips on crypto/VDA (Virtual Digital Assets) transaction. “AT least three special pilot projects is being planned to explore the possibility of on-boarding new REs (Reporting Entities) or new reportable transaction through new SFT (Specified Financial Transactions) or expanding the scope of reporting through existing SFT and expanding the scope of reporting of Crypto/VDAs,” he said.  

Published on May 10, 2026