CBDT Recovers ₹20,000 Crore in Tax Dues in Q1, Sets ₹2 Lakh Crore Target for FY25

The Central Board of Direct Taxes (CBDT) has recovered ₹20,000 crore in outstanding tax dues in the first quarter of the 2024-25 financial year. This is almost double the amount recovered in the same period last year, showing a strong start to the year for the income tax department.

How Much in Tax Dues Was Recovered?

According to officials, the ₹20,000 crore recovered includes:

• ₹17,244 crore from corporate tax
• ₹2,714 crore from personal income tax
• ₹180 crore from short or non-payment of TDS (Tax Deducted at Source)

These recoveries were made against demand notices sent by the income-tax department up to March 31.

A Bigger Tax Collection Target for 2024-25

The income tax department has set a huge recovery target of ₹1.96 lakh crore for the full financial year. Officials are confident that they may even reach ₹2 lakh crore by the end of the year.

To achieve this, the CBDT has asked its officers to speed up the recovery process. Field offices have been given zone-wise targets, and the focus is on cases where appeals have already been decided in favour of the department in the first stage.

How the Income Tax Department is Moving Ahead

The department is closely looking at areas where it believes taxpayers are under-reporting income or avoiding tax. Assessing officers have been told to make every possible effort to recover confirmed dues.

Out of all the appeals disposed of in 2024-25 so far, ₹1.96 lakh crore worth of demands have been confirmed in favour of the income tax department.

In the full year of 2024-25, the CBDT had recovered ₹92,400 crore, which included:

• ₹67,711 crore (corporate tax)
• ₹23,536 crore (personal income tax)
• ₹1,100 crore (TDS non-payment)

Read more: ITR Filing 2025: How to Pay Zero Tax on ₹15.5 Lakh Annual Income.

Conclusion

Tax recovery has become a major focus for the CBDT, especially with outstanding tax dues rising sharply over recent years. According to a parliamentary report, tax arrears have grown from ₹10 lakh crore in 2019-20 to ₹42 lakh crore in 2024. Out of this, the department aims to recover ₹27 lakh crore.

With a strong recovery drive already underway, the income tax department is working hard to meet its ambitious goals for this year.

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