CBDT Cracks Down on Pending Tax Dues with Massive Rs 2.57 Lakh Crore Recovery Plan:

CBDT Cracks Down on Pending Tax Dues with Massive Rs 2.57 Lakh Crore Recovery Plan

The CBDT has directed tax officials to accelerate recovery of pending and confirmed tax dues, targeting Rs 2.57 lakh crore in FY 2025-26.

IT Dept Intensifies Tax Recovery Proceedings for FY 2025-26

authorSaloni KumaridateMay 14, 2026
Last update on May 14, 2026
CBDT Cracks Down on Pending Tax Dues with Massive Rs 2.57 Lakh Crore Recovery Plan According to the reports by CNBCTV18, the Central Board of Direct Taxes (CBDT) is anticipated to intensify tax recovery during the Financial Year 2025-26 (Assessment Year 2026-27) with a target of recovering a confirmed tax demand amounting to Rs 2.57 lakh crore. The move is aimed at improving tax compliance and reducing the large backlog of unpaid dues. There are still cases that exist where tax demands have already been completely sustained by the Commissioner of Income Tax (Appeals), giving tax authorities strong leverage and the department a stronger legal position to recover pending amounts.
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The CBDT has directed the Assessing Officers (AOs) to make all possible efforts to recover both present and old pending tax demands. However, recovery action will not apply in cases where higher appellate authorities have granted a stay on collections. To strengthen the recovery process, the CBDT has directed officials to pay special attention to arrear demands as well as fresh tax liabilities arising during the current financial year. The department also plans to form special teams to monitor and handle the top 10,000 arrear cases across the country.
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Moreover, the Principal Chief Commissioners of Income Tax (CCITs) have been asked to actively help Assessing Officers and Tax Recovery Officers (TROs) in speeding up these recovery proceedings.

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Saloni Kumari

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Saloni is a Content Writer with 2+ years of experience at studycafe.in. She writes legal, taxation, and finance related content including GST, Income Tax etc. Skilled in translating complex judicial pronouncements and regulatory developments into clear, and reader-friendly articles. Experienced in covering judgements of ITAT, High Court, GSTAT, and news related to Income Tax, GST, and corporate law. She can be reached at [email protected].
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