Summary
The CBDT Central Action Plan for FY 2025-26 outlines top priorities like reducing tax litigation, enhancing taxpayer services, timely disposal of appeals, and boosting high-quality scrutiny. This blog simplifies key action areas for professionals and taxpayers.
Introduction
The CBDT Central Action Plan FY 2025-26 was recently released to guide the income tax department’s strategic efforts across India. From litigation reduction to better taxpayer support, the focus is on transparency, efficiency, and timely compliance.
This blog simplifies the Plan’s top priorities and their impact on Indian taxpayers and professionals.
What is the CBDT Central Action Plan?
Every year, the Central Board of Direct Taxes (CBDT) issues a Central Action Plan (CAP) to:
- Set performance targets for officers
- Enhance taxpayer-centric processes
- Guide assessment and appeal timelines
- Strengthen legal compliance
For FY 2025–26, the Plan continues last year’s momentum with additional stress on quality scrutiny, early refund issuance, and faceless appeal finalisation.
Key Areas of Focus in FY 2025–26
| Area | Details |
|---|---|
| 1. Litigation Management | Disposals of appeals before CIT(A) and ITAT to be prioritised, especially cases older than 3 years. |
| 2. Timely Refunds | Early processing of ITRs and issuance of valid refunds within 30 days from processing. |
| 3. Disposal of Scrutiny Cases | Targets for completing assessments, especially high-potential scrutiny cases, with quality remarks. |
| 4. Prosecution Disposal | Regular review of pending prosecution cases under Income-tax Act; quarterly reporting to Board. |
| 5. Faceless Appeal Progress | Finalisation of appeals under the National Faceless Appeal Centre (NFAC) with strict adherence to timelines. |
| 6. Taxpayer Services | Faster grievance redressal via e-Nivaran; promotion of e-filing and digital support. |
| 7. High Demand Recovery | Targeted recovery actions for top 100 high-demand cases in each region. |
| 8. Survey/Enforcement Results | Focused surveys in high-risk sectors with data-driven triggers (no random surveys). |
Legal Backing & Notifications
The CAP draws support from:
- Income-tax Act, 1961
- Section 119 – CBDT’s power to issue instructions
- Recent Budget 2024–25 commitments on faceless schemes and digital reform
- CBDT official site link for circulars
Expert View: Practical Tip for Professionals
“With strict timelines set under this year’s CAP, early filing of ITRs and timely response to scrutiny notices will help taxpayers avoid penalties and delays in refunds.”
— CA Meenal Iyer, Partner at Mumbai-based tax firm
How it Impacts You
- If you’re a salaried taxpayer: Expect faster refunds and better grievance redressal.
- If you’re a consultant or CA: Higher scrutiny quality demands detailed submissions and tracking case disposals.
- If you’re a business: Prepare for tighter compliance on TDS, assessments, and real-time audits.
Subheading: CBDT Central Action Plan Targets in Numbers
- Appeal disposal target: 100% for >3-year-old cases
- Refund turnaround: Within 30 days from ITR processing
- Scrutiny case disposal: 100% by Q3, except for special audit cases
- Survey actions: Only data-backed with clear prior approval
FAQs
Q1: Does this affect AY 2024–25 ITR filers?
Yes. The Plan impacts how quickly your return gets processed and refunds issued.
Q2: Will scrutiny cases increase?
Not necessarily in volume, but quality and depth of scrutiny will be higher.
Q3: Can I check refund status faster now?
Yes. You can track via the TIN-NSDL refund portal.
Final Thoughts
The CBDT Central Action Plan FY 2025–26 continues India’s push for a more transparent and efficient tax system. From faceless appeals to speedy refunds, it reinforces the government’s focus on digital-first tax governance.