Mumbai, Delhi and Karnataka would lead the direct tax collection charge with enhanced targets for FY26 as the Centre has pegged a collection growth of 13.2% at Rs 25.2 lakh crore for the year, despite substantial income tax relief in the budget.
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As per Central Board of Direct Taxes (CBDT) action plan for FY26, the Mumbai region—under the Principal Chief Commissioner of Income Tax (PCCIT-Mumbai)—has been assigned a collection target of Rs 7.44 lakh crore, accounting for 29.5% of the national direct tax target, up slightly from 29% in FY25.
Delhi follows with a target of Rs 5.6 lakh crore, or 22.2% of the overall target, compared to 21% last year.
The Karnataka and Goa region has been given a collection target of Rs 2.81 lakh crore, representing 11.15% of the total direct taxes, marginally up from 11% in FY25.
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With a target to collect Rs 25.2 lakh crore for FY26, the CBT has suggested a multi-pronged action plan to improve tax collections. Accordingly, it has told officers to undertake sectoral analysis and address negative trends of tax payments; find out the reasons for negative trends of tax payments or growth of advance tax in such sectors; close monitoring of top advance tax taxpayers and identifying claims of incorrect exemptions and deductions.
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