Big Direct Tax Targets For Mumbai, Delhi, Karnataka In FY26 As Filing Season Begins

As the tax filing season has rolled in for the financial year (FY) 2025-26, the Central Board of Direct Taxes (CBDT) is tightening the noose for a big year ahead. For FY26, the Centre has set an ambitious direct tax collection target of Rs 25,2 lakh crore, a 13.2 per cent jump over the last year, right when taxpayers earlier received some relief in the Union Budget.

A big share of this tax collection will come from the regions of Mumbai, Delhi, and Karnataka. According to CBDT’s internal action plan, the Mumbai region, overseen by the Principal Chief Commissioner of Income Tax, is expected to bring in around Rs 7.44 lakh crore. This would be nearly 30 per cent of the total target, up from 29 per cent the previous year.

Delhi is not far behind. It’s been handed a target of Rs 5.6 lakh crore, or 22.2 per cent of the national pie (compared to 21 per cent in FY25). The Karnataka and Goa region is looking at a collection goal of Rs 2.81 lakh crore, slightly up from the 11 per cent share it was given last year to 11.15 per cent now.

How is the tax department going to meet these targets?

The CBDT has laid out a detailed strategy wherein officers have been asked to dig deeper into sector-specific data, flag any unusual dips in tax payments, and keep a closer watch on advance taxpayers.

The taxman will also be keeping a close eye on claims for deductions and exemptions.

All of this comes as taxpayers begin filing their returns for the current year. In line with this, the government has rolled out a new set of Income Tax Return (ITR) forms for assessment year (AY) 2025-26. While most changes are structural and aimed at simplifying reporting, taxpayers, especially those with capital gains or foreign assets, will need to go through the fine print more carefully this year.

Clearly, the focus of the tax department is on plugging any gaps in income tax reporting and improving voluntary compliance without necessarily turning the screws too tight. But with a Rs 25.2 lakh crore goal on the table, taxpayers can expect tax officers across regions to be a lot more vigilant in the months ahead.