CBDT Unveils FY27 Action Plan, Orders Aggressive Crackdown on Tax Evasion and High-Value Search Cases

The Central Board of Direct Taxes (CBDT) has rolled out its FY27 Central Action Plan, directing field formations to intensify efforts against tax evasion, unaccounted income and undisclosed assets. The plan lays down ambitious enforcement targets, including increased search and seizure operations, enhanced survey actions and a stronger focus on high-value tax evasion cases.

The Income Tax Department has been tasked with identifying major cases involving significant undisclosed income, accelerating disposal of pending proceedings and strengthening action on tax evasion petitions. Authorities have also been instructed to closely monitor suspicious financial transactions and investigate cases involving benami properties and concealed income.

The action plan is expected to increase compliance pressure on sectors traditionally associated with large cash transactions, including real estate, bullion trade, wholesale trading, unorganized businesses and certain small and medium enterprises (SMEs). High-net-worth individuals and businesses with unusual transaction patterns may also face greater scrutiny.

The move is aimed at improving voluntary tax compliance, boosting revenue collection and promoting further formalisation of the economy through stricter enforcement and data-driven tax administration.