Mumbai and Delhi Get Higher Direct Tax Targets for FY26
By Author | May 12, 2025
CBDT News
The Central Board of Direct Taxes (CBDT) has set ambitious direct tax collection targets for FY26. Despite significant income tax reliefs announced in the Union Budget, the government expects collections to rise by 13.2% to reach ₹25.2 lakh crore.
Mumbai to Contribute Nearly 30%
Mumbai tops the list once again. The region under the Principal Chief Commissioner of Income Tax (PCCIT-Mumbai) must collect ₹7.44 lakh crore. This accounts for 29.5% of the nationwide target, slightly higher than last year’s 29%.
Delhi and Karnataka Follow Closely
Delhi has received a direct tax collection goal of ₹5.6 lakh crore, which is 22.2% of the total—up from 21% in FY25.
Meanwhile, the Karnataka and Goa region has been asked to collect ₹2.81 lakh crore, making up 11.15% of the national target. This is a marginal increase from 11% the previous year.
CBDT Strategy to Achieve the Target
To ensure these ambitious goals are met, the CBDT has outlined a multi-pronged action plan. Officers are expected to:
- Conduct sector-wise tax analysis
- Investigate negative trends in tax payments and advance tax growth
- Monitor top advance tax contributors
- Detect incorrect exemption and deduction claims
These measures aim to enhance compliance and strengthen the tax base, even amid the ongoing relief measures introduced in the latest budget.
