The Income Tax Department has set a direct tax collection target of Rs 14,200 crore for the Nagpur region in the financial year 2026-27. What stands out is that individuals are expected to contribute a much larger share than companies which underline the growing role of salaried employees, professionals and traders in the region’s tax base. According to departmental figures, individual taxpayers are expected to contribute nearly Rs 9,000 crore, while corporate tax collections are targeted at Rs 5,200 crore. Income Tax officials said the annual collection target has been increasing by around 15 per cent every year which reflects the department’s focus on improving tax compliance and widening the taxpayer base. An Income Tax source said,

 

“The contribution from individual taxpayers has been rising steadily over the years. Salaried employees, professionals, traders and small business owners now account for a major share of tax collections. This shows better compliance as well as growth in personal incomes.” Despite the ambitious target, Nagpur continues to remain one of the country’s smallest tax jurisdictions. Among the 19 Income Tax regions, Nagpur ranks 18th, ahead of only the North East region. In comparison, Mumbai alone has been assigned a collection target of Rs 7,54,000 crore, nearly 53 times higher than Nagpur’s. Together, the country’s top four Income Tax regions contribute around 62 per cent of India’s total direct tax collections. Officials believe Nagpur’s relatively weak industrial base is the biggest reason behind its modest tax potential.

 

“The city does not have enough large corporate taxpayers compared to major industrial centres. Limited industrial expansion and fewer large employers naturally affect corporate tax collections,” another senior Income Tax source said. The performance of the city’s Special Economic Zone (SEZ) also reflects this challenge. Although the Government has stated that the SEZ has attracted around 90 companies and generated employment for 1.27 lakh people, Income Tax sources said only about 30 units are currently operational, while several allotted plots are yet to become functional. “We are confident of meeting the target through improved compliance, digital monitoring and taxpayer-friendly initiatives,” an official added. Officials emphasised that the Intelligence and Criminal Investigation (I&CI) Wing has already commenced surveys for the current financial year, and that raids and survey operations will be intensified to meet the target.