ECONOMY
Mumbai, Delhi, Karnataka allotted stiff higher targets to meet FY26 direct tax goal
- IBJ Bureau
- May 12, 2025
umbai, Delhi and Karnataka would lead the direct tax collection charge with enhanced targets for FY26. These States will have to bear burden of the Centre’s proposed 13.2 per cent growth in tax collection of Rs 25.2 lakh crore for the current financial year despite substantial Income Tax relief in the Union Budget.
According to the action plan of the Central Board of Direct Taxes (CBDT) for FY26, the Mumbai region – under the Principal Chief Commissioner of Income Tax – has been assigned a collection target of Rs 7.44 lakh crore, accounting for 29.5 per cent of the national direct tax target, up slightly from 29 per cent in FY25.
Delhi follows with a target of Rs 5.6 lakh crore or 22.2 per cent of the overall target compared to 21 per cent last year.
The Karnataka and Goa region has been given a collection target of Rs 2.81 lakh crore, representing 11.15 per cent of the total direct taxes, marginally up from 11 per cent in FY25.
With a target to collect Rs 25.2 lakh crore for FY26, the CBDT 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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