CBDT Plans ₹5,000 Crore Land Purchase Across Delhi, Mumbai and Bengaluru for Expansion

The Central Board of Direct Taxes (CBDT) is planning land purchases worth around ₹5,000 crore in Delhi, Mumbai and Bengaluru to set up income-tax offices and staff quarters, as per a Live Mint news report citing two senior government officials. 

The largest identified parcel so far is an MTNL-owned plot in Connaught Place, New Delhi, valued at around ₹2,000 crore. The CBDT is also considering sites in Santa Cruz and Powai in Mumbai, as well as locations in Bengaluru. 

In Mumbai, the proposal includes residential facilities for around 1,000 income-tax officers over the medium term, one of the officials said. 

Existing Offices and Staff Accommodation 

A shortage of government-owned buildings has left several income-tax offices operating from rented premises. The lack of staff quarters in major cities has also meant that officers often have to commute from distant suburbs. 

The department's sanctioned strength stood at 77,713 employees in August 2025, but its actual cadre was 51,421. The gap comes as the department handles a growing volume of tax-related work, including investigations and appeals. 

Direct Tax Revenue 

The proposed spending comes at a time when direct taxes account for a major share of government revenue. Personal income tax and corporate tax collections are budgeted at ₹26.97 trillion for FY27, representing 61.2% of projected gross tax revenue.  

The budget estimate for indirect taxes, including GST, stands at ₹17.07 trillion. 

Other Projects Underway 

The income-tax department has recently added office space in Mumbai. In July, Finance Minister Nirmala Sitharaman inaugurated Aaykar Sindhu, a 13-floor building covering 1.13 lakh sq ft at Nariman Point. 

Other government projects include residential complexes with 214 quarters in Gurugram and 198 in Faridabad, announced in March 2024 as part of seven projects worth over ₹1,000 crore. 

The CBIC has also developed the ₹645-crore New GST Bhawan in Hyderabad, with space for around 1,500 employees. At Wadala in Mumbai, a 40-acre township with over 4,000 residential units and three office towers is under construction. 

The proposed purchases are yet to add to the department's existing property portfolio. 

Read More: Indian Railways Revises Variable Dearness Allowance for Contract Workers from October 1, 2026! 

Conclusion  

The proposed purchases cover office space and staff accommodation in three major cities. The CBDT has identified land in Delhi and Mumbai, while sites in Bengaluru are also under consideration. 

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